What the papers say - June 12, 2007

Inflation figures are expected to show the cost of living at its lowest level for seven months as falling energy prices and rising interest rates take effect. Economists predict that the official measure of inflation, the Consumer Price Index will drop to 2.6 per cent in May from 2.8 per cent the previous month - its lowest level since last October - Daily Mail​

Mothers are set to get a legal right to breastfeed in public places under an overhaul of Britain's equality laws. The proposal will be unveiled by Communities Secretary Ruth Kelly today as she launches consultation for a Single Equality Bill to simplify and modernise the law - Daily Mail​

Shares in UK pub companies have been sliding over the past few weeks as investors face a growing list of potentially bad news. The sector has been robust, expanding rapidly in spite of the introduction of the smoking ban in much of the UK, while shares in Punch Taverns, JD Wetherspoon, Mitchells & Butlers and Greene King have all risen by between 25 and 50 per cent over the past six months. However, some of the shine has started to come off in recent weeks - The Financial Times​

Diageo, the drinks group that produces Guinness and Smirnoff vodka, gained 1.4 per cent to £10.62 yesterday after Dresdner Kleinwort said earnings forecasts looked conservative and might have to be raised. The broker believes underlying, organic earnings growth of 9 per cent is possible this year. It thinks new guidance could be announced in a trading statement, due in the next three weeks - The Financial Times​