A profits upgrade from Argos owner Home Retail Group helped raise spirits today during an otherwise lacklustre session for the London market.

Home Retail’s second increase to guidance in less than three months caused its shares to rise by 2.5%, or 6.7p to 274.5p, and meant other retailers including Marks & Spencer and Next followed suit.

The FTSE 100 Index was 21.7 points lower at 5618.9 as a surge in Chinese inflation raised fears that Beijing officials will have to do more to prevent the country’s economy from overheating.

The potential impact on growth prospects meant mining stocks were under pressure, with Xstrata down 19p at 1191.5p and Kazakhmys off 24p at 1521p.

The risers board was dominated by retail stocks, with Next ahead 35p to 2013p, Marks & Spencer 4.6p stronger at 353.7p and B&Q owner Kingfisher 3p higher at 219.7p. Morrisons was 5.1p lower to 299.1p, despite reporting a 21% rise in full-year profits.

In the second tier, shares in support services firm Connaught rose 3%, or 7.4p to 309.9p, as traders digested reports of potential bid interest from 3i.

Waste disposal group Shanks moved in the opposite direction, down 4p to 104.4p as private equity firm Carlyle confirmed it was no longer interested in bidding for the firm.