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UK CPI, BoE decision due next week

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Tesco ( TSCDF ) climbs after it reiterates FY guidance

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Crest Nicholson jumps on rejecting Bellway's ( BLWYF ) offer

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FTSE 100, FTSE 250 fall 0.2% each

(Updated at 1555 GMT)

By Sruthi Shankar and Purvi Agarwal

June 14 (Reuters) - Britain's FTSE 100 marked its

longest weekly losing streak since March 2020 on Friday, as

investors grappled with uncertainty around the outlook for

interest rates and political turmoil in Europe.

The blue-chip FTSE 100 index slipped 0.2%, logging

its fifth straight weekly decline.

The FTSE 250 midcap index also fell 0.2%, closing at

its lowest level in over a month in a third straight week of

losses.

The knock-on effects from French President Emmanuel Macron's

gamble to call snap elections, a hawkish projection from the

U.S. Federal Reserve and weaker-than-expected UK GDP data for

April weighed on the British markets this week.

"The European parliamentary elections have soured the mood,

particularly in France. It is natural if almost all of Europe is

in the red today, the UK would not be immune," said Steve

Sosnick, chief strategist at Interactive Brokers.

The pan-European STOXX 600 closed 1.0% lower.

In the London market, personal goods stocks

led broader declines with a 3.8% loss, falling to its lowest

level since July 2010.

Investor focus is now on the domestic inflation report and

the Bank of England's (BoE) monetary policy meeting - the last

before the July 4 election - due next week.

"Whether there is political pressure or not, I don't think

the Bank of England will cut rates in June because service

sector inflation and wage growth are still too sticky," said

Fiona Cincotta, senior market analyst at City Index.

The British public's expectations for inflation cooled

last month, a BoE survey showed, and the highest proportion

since the global financial crisis thought it would be best for

the economy if interest rates fell.

Among single stocks, Tesco ( TSCDF ) rose 2.5% after

Britain's biggest supermarket group reported a 4.6% rise in

underlying quarterly sales in its home market and reiterated its

forecast.

Crest Nicholson jumped 13.7% to top the FTSE 250

after the homebuilder said it rejected a 650 million pound ($828

million) revised unsolicited proposal from rival Bellway ( BLWYF )

.

Bellway's ( BLWYF ) shares slid 4.4%.