The blue-chip FTSE 100 climbed 0.6% to its highest since June 29, with commodity-linked stocks such as Shell, BP and Rio Tinto providing the biggest boost.

British consumer prices surged in June to hit an annual rate of 9.4%, the highest rate since early 1982, official figures showed, boosting chances of a 50 basis point (bps) rate hike in August.

Advertising firm WPP gained 2.7% after U.S. rival Omnicom Group reported stronger-than-expected quarterly results.

The domestically focussed midcap index rose 0.3%, also hitting its highest in three weeks.

Royal Mail dipped 2.9% after the post and parcel delivery firm reported a 11.5% drop in its quarterly revenue in its UK arm, hurt by a decline in its letters business and inflation-hit consumers cutting back on online shopping.

Morses Club PLC tumbled 41.1% after the subprime lender said it was pursuing a potential use of the so-called scheme of arrangement to deal with the high levels of redress claims that threaten to jeopardise its future.

(Reporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.V)