By Atul Prakash

LONDON (Reuters) - The blue-chip index ended higher for the second straight day on Friday, as muted U.S. consumer price data and weaker crude oil prices helped ease worries over inflation.

The FTSE 100 .FTSE gained 12.3 points, or 0.2 percent, to close at 5,802.8 points, building on Thursday's 1.2 percent rise, as banks rose on a move by the financial regulator to require disclosure of short positions in firms issuing rights.

"The U.S. CPI data was reasonably well behaved. The headline was up, but the core measure was in line with expectations. Oil price dips helped as well," said Philip Isherwood, strategist at Dresdner Kleinwort.

"A number which could have caused some problems, has not, and something that is causing -- the oil price -- has come down," he added.

A U.S. report said the Consumer Price Index rose at its fastest in six months in May, propelled mainly by soaring oil prices. But core CPI, which excludes volatile energy and food costs, rose modestly and at a pace forecasters had expected.

Investors bet the latest inflation statistics would allow the Fed to keep rates steady, nurturing an economic recovery and improving the outlook for corporate profits.

Banks featured heavily among leading FTSE 100 gainers, helped by a move by the Financial Services Authority to require disclosure by investors with significant short positions in companies issuing rights, which is expected to prevent heavy selling.

HBOS HBOS.L was a standout gainer, jumping 13.7 percent, while Royal Bank of Scotland (RBS.L: Quote, Profile, Research) added 3.2 percent, Alliance & Leicester ALLL.L tacked on 10.9 percent and Barclays (BARC.L: Quote, Profile, Research) was up 1 percent.