British FTSE 100 index extended losses on Tuesday after BHP Billiton announced the demand for iron ore from China was falling. Resource stocks weighed heavily on the index with BHP Billiton tumbling 3.4% and Fresnillo slipping 4.4%. Rio Tinto and Kazakhmys lost 3.7% and 2.8% respectively. Banking shares declined after data showed UK inflation climbed 3.4% and remained above BoE limit. Barclays shed 1.9% and Lloyds Banking Group fell 2.5%. At the moment of writing FTSE 100 index is 1.2% or 71.35 points down at 5,889.78.