Britain's benchmark index slipped on Wednesday as Bunzl's shares hit a multi-year low after the business supplies distributor lowered its annual forecast, while a softer domestic inflation print did little to aid investor sentiment.

As of 1020 GMT, the blue-chip FTSE 100 index was down 0.3% and the midcap index fell 0.5%. Both indexes rallied in the previous session after U.S. President Donald Trump indicated possible exemptions on auto-related levies.

Bunzl dropped 23.1%, set for its worst day on record, after the British company cut its 2025 forecast and paused its share buyback programme.

The stock weighed on the industrials sub-index , which fell 11%.

On Wednesday, data showed British inflation slowed to its weakest in three months in March, but higher bills and employer costs will pressure prices against the backdrop of Trump's trade war.

The data came ahead of the Bank of England's interest rate decision next month, where traders expect a quarter-point reduction by the central bank.

Global stocks also fell on Wednesday over the U.S.-issued restrictions on chip sales to China. Nvidia flagged $5.5 billion in charges due to the chip export controls, with its shares down 5.7% in premarket trading.

"It's still all connected with the concerns about global tariffs and slowdowns ... there's nervousness in the market. Any bad news or any hint of bad news is being punished severely," said Nick Saunders, CEO of Webull UK.

Limiting overall losses, the precious metals and mining sub-index rose 4.8% to a more than three-year high after gold prices crossed $3,300 for the first time on safe-haven demand.

In other stocks, retailer WH Smith lost 5.1%. The company said it expects to meet full-year market expectations despite reporting a slight dip in first-half profit.

Shares of nanotechnology tools maker Oxford Instruments jumped 6.1%, the best individual performer on the midcap index. The company gave an annual profit forecast in line with expectations.

(Reporting by Nikhil Sharma in Bengaluru; Editing by Shounak Dasgupta)