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June 5 (Reuters) - UK's FTSE 100 rose on Friday, bucking

a risk-off mood in other global markets, as investors took

comfort from data suggesting that inflationary pressures from

the Middle East war may be less severe than feared.

The blue-chip FTSE 100 index rose 0.45% as of 12:48

pm GMT, while the midcap FTSE 250 was flat.

* British businesses expect to increase prices less quickly

in the year ahead than they did in April as some of the initial

energy price shock caused by the Iran war fades, according to a

survey published by the Bank of England.

* The survey of more than 2,000 British companies showed 57%

of firms expected to increase their prices in response to the

energy price shock, down 7 percentage points from April.

* "The latest evidence appears to support our view that the

weakness of the labour market will prevent the second-round

inflation effects that the Bank of England fears," said Paul

Dales, chief UK economist at Capital Economics.

* "If so, the Bank of England might stand out from the

central bank crowd by not raising interest rates."

* Still, an early resolution to the conflict and the

reopening of the Strait of Hormuz, a critical shipping route for

global oil shipments, would be essential to prevent further

escalation of the economic impact.

* Iran reaffirmed support for its Lebanese ​ally Hezbollah

and demanded Israel withdraw from southern Lebanon, underscoring

complications facing an interim deal to end the broader conflict

between Washington and Tehran.

* Traders expect the BoE to keep borrowing costs unchanged

at 3.75% this month, but see one or possibly two quarter-point

hikes in rates later this year.

* Investors are also contending with political uncertainty

in the UK.

* Earlier this week, Labour mayor Andy Burnham signalled he

would run in any leadership race against ​Prime Minister Keir

Starmer, if he won a local ‌election later this month.

* Tech shares jumped 2.1% on Friday, while

personal care stocks gained 1.7%. Precious metal

miners, on the other hand, fell 2.2%.