UK stocks edge lower as investors assess inflation before BoE decision

Hays

Today 10:50

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
FTSE down 0.1%, FTMC down 0.4%
UK CPI holds at 13-month low of 2.8% in May
BoE expected to keep interest rates at 3.75% on Thursday

    June 17 (Re - UK stocks edged lower on Wednesday, with consumer staples and energy shares weighing, as investors assessed steady inflation ahead of the Bank of England's rate decision.
The blue-chip FTSE 100 index .FTSE fell 0.14% to 10,479.77 points by 0936 GMT, while the midcap FTSE 250 .FTMC slipped 0.4%.
British inflation unexpectedly held at 2.8% for May, compared with a 3% rise economists polled by Reuters had expected, prompting traders to slightly trim their expectations for a rate hike later this year. 
"For the investor it is a dilemma; good news for the economy's resilience is bad news as it justifies a rate hike," said Nick Saunders, CEO of online investment platform Webull UK.
Consumer staple stocks declined with British American Tobacco BATS.L falling 1.7%.
Utilities shares .FTUB6510 fell the most among sectors, slipping 1.1%.
Oil prices were steady, trading below $80 a barrel. Oil giants BP BP.L and Shell SHELL> were down 0.7% each.
Among heavyweight banks, Barclays BARC.L rose 2% after BofA Global Research raised its price target, while peer Standard Chartered STAN.L gained 1.3%.
British house prices rose in the year to April, data showed on Wednesday, sending homebuilders .FTNMX402020 up 1.5%.
Hays HAYS.L rose 1.5% after the recruiter sold its businesses in six European countries.

 (Reporting by Utkarsh Hathi in Bengaluru; Editing by Tasim Zahid)
 ((utkarshtushar.hathi@thomsonreuters.com))