European markets pulled back on Wednesday after a rally on Wall Street, having struggled to build positive momentum so far this week.

The pan-European Stoxx 600 slipped 0.4% by early afternoon, having given up earlier gains. Basic resources fell 1.2% while food and beverage stocks added 0.9%.

On Wednesday, investors were tracking preliminary gross domestic product data from the euro zone for the second quarter, as well as unemployment figures for the single currency bloc, and the latest U.K. inflation figures for July.

European markets closed slightly above the flatline Tuesday, with the pan-European Stoxx 600 index ending the day up 0.2%, with basic resources adding 3.4% to lead gains while health care slid 0.6%.

Elsewhere, U.S. stocks advanced on Tuesday after strong earnings from Walmart and Home Depot. Markets in Asia-Pacific were higher towards the close of trade on Wednesday, with Japanese stocks surging after better-than-expected export figures.

UK inflation hits new 40-year high of 10.1% as food and energy price surge continues

U.K. inflation rose to another 40-year high in July as spiraling food and energy prices continued to intensify the country’s historic squeeze on households.

The consumer price index rose 10.1% annually, according to estimates published by the Office for National Statistics on Wednesday, above a Reuters consensus forecast of 9.8% and up from 9.4% in June.

Core inflation, which excludes energy, food, alcohol and tobacco, came in at 6.2% in the year to July 2022, rising from 5.8% in June and ahead of projections of 5.9%.

Rising food prices made the largest upward contribution to annual inflation rates between June and July, the ONS said in its report.