UPDATE 2-Commodity stocks, inflation worries drag FTSE 100 to over 5-week low

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UPDATE 2-Commodity stocks, inflation worries drag FTSE 100 to over 5-week low

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* Burberry , BT Group slip on lower annual earnings

* Alphawave IP Group slumps in London market debut

* FTSE 100 down 0.6%, FTSE 250 off 0.2%

(Updates with market close)

By Shivani Kumaresan and Devik Jain

May 13 (Reuters) - London's FTSE 100 fell on Thursday, dragged down by losses in heavyweight commodity stocks and Burberry Group, while fears of a spike in inflation as the economy recovers hurt demand for equities.

The blue-chip index .FTSE slipped 0.6% to its lowest level since April 7.

Miners such as Rio Tinto RIO.L , Anglo American (JO: AMSJ ) AAL.L , and BHP Group (JO: BHPJ ) BHPB.L and oil majors BP BP.L and Royal Dutch Shell RDSa.L were among the biggest drags, tracking lower crude and commodity prices. O/R MET/L

The domestically focussed mid-cap FTSE 250 index .FTMC declined 0.2%.

Globally, stocks slipped after a shocking rise in U.S. inflation bludgeoned Wall Street and sent bond yields surging on worries the Federal Reserve might have to move early on tightening. MKTS/GLOB

"Inflation fears have been stalking the market all week and are showing few signs of easing," said Sophie Griffiths, market analyst, UK & EMEA, at OANDA.

"Whilst some inflation is good for companies and the market, the latest US consumer price data points to the balance moving too far in one direction."

After rising 11% this year on reopening optimism, the FTSE 100 has pared some of those gains in the last few sessions on worries that central banks might tighten their ultra-loose monetary policies sooner than expected to curb inflation.

Luxury brand Burberry BRBY.L tumbled 4.2% on Thursday after it reported lower annual sales, hit by store closures and reduced tourism. Group BT.L , Britain's biggest broadband and mobile provider, slid 5.9% after it reported lower earnings for the year to end-March and forecast adjusted revenue to be broadly flat this year. computer chip designer Alphawave IP Group's shares AWE.L tumbled 16.3% in their London market debut. cyber security adviser NCC Group NCCG.L gained 14.2% after it proposed to buy the intellectual property management business of Iron Mountain (NYSE: IRM ) Inc IRM.N .

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