FTSE 100 registers monthly decline as oil rally heightens inflation concerns

Sept 30 (Reuters) - London's FTSE 100 fell on Wednesday and posted a monthly loss as persistent inflation concerns and rising bond yields dampened investor sentiment.

The blue-chip FTSE 100 index closed 0.29% lower at 10,606 points, registering its biggest monthly loss since March, though notching a seventh consecutive quarterly gain. 

The midcap FTSE 250 climbed 0.68% but dipped for the month.

• Oil prices rose with Brent crude above $103 a barrel, reinforcing inflation concerns and boosting expectations that interest rates could remain higher for a longer period

• Heavyweight banks and pharma stocks were the biggest drags in the blue-chip index, declining 0.7% and 1% respectively

• Telecom stocks also dropped, with Airtel Africa shedding 3.3%

• Global bonds inched higher, with the yield on the British benchmark 10-year gilt hovering near two-decade highs

• Reflecting rate tightening across central banks globally, traders are pricing in at least one 25-basis-point rate hike by the Bank of England this year, according to data compiled by LSEG

• BoE policymaker Alan Taylor said it was unclear that it would be practical for the BoE to do a single rate hike to tame inflation without fuelling unwarranted market speculation of further increases

• Limiting losses, the utilities sector rose 1.7% a day after British PM Andy Burnham made a series of policy announcements for the sector

• On the data front, Britain's economy grew more quickly than previously thought in the second quarter, with output expanding by 0.5% in the April-to-June period, the Office for National Statistics said

• Among other stocks, Greggs advanced 8.2% after the fast-food chain raised its annual profit outlook as underlying sales growth accelerated in the third quarter

• Holiday and insurance group Saga surged 22.8% to a near seven-year high after forecasting materially higher annual profit

(Reporting by Anand Gopal in Bengaluru; Editing by Mrigank Dhaniwala and Alex Richardson)