UPDATE 2-FTSE 100 slides as stronger pound, lockdown worries weigh

* Brexit talks set to resume again - EU sources
* Consumer price inflation climbs to 0.5%
* Metro Bank rises on increase in third-quarter lending
* FTSE 100 down 1.9%, FTSE 250 off 0.8%

(Adds comment; updates to close)
By Devik Jain
Oct 21 (Reuters) - London's FTSE 100 slipped to a near
one-month low on Wednesday as the pound jumped on hopes Brexit
talks were set to resume, while investors remained concerned
over prospects of more coronavirus restrictions in England.
The export-heavy FTSE 100 index .FTSE closed 1.9% lower,
dragged down by travel and leisure .FTNMX5750 , pharmaceutical
.FTNMX4570 industrial .FTNMX2720 and financial .FTNMX8770
stocks.
The domestically-focussed mid-cap FTSE 250 index .FTMC
lost 0.8%, with gold miner Centamin Plc CEY.L tumbling 19.2%
to the bottom of index after cutting its 2020 production
forecast. New tiered restrictions in parts of England due to a
resurgence in novel coronavirus cases and an impasse over a
Brexit trade deal have pressured UK markets this week, with data
also signalling a slowing domestic recovery.
South Yorkshire will join Liverpool and Lancashire in the
highest tier with the same measures to be imposed in Manchester
as talks stalled for a support package with local
leaders. "The underlying fear for the markets at the moment is that
the UK probably gets to a point where you've amended
restrictions in so many regions that perhaps the next step would
be a national lockdown," said Connor Campbell, financial analyst
at Spreadex.
The blue-chip index also underperformed as sterling soared
to a six week-high on reports that Brexit talks were expected to
resume again, after the United Kingdom walked away from the
negotiations last week. GBP/
"There are hopes that a deal should materialise in
mid-November, though it needs to be taken with a significant
pinch of salt as we've been in this position countless times
now." said Campbell.
Official figures meanwhile showed UK public debt jumped to
its highest since 1960 in the first half of the year, while
annual consumer price inflation climbed to 0.5% in September.

In company news, Metro Bank Plc MTRO.L rose 2.5% after the
lender reported a 2% increase in lending for the third quarter.