UK39;s stubborn inflation fails to fall, ahead of BoE
Real estate stocks drop against higher bonds
European autos up as data shows car sales rise in May

June 21 Reuters European shares edged lower on Wednesday after the real estate sector led declines against rising euro zone bond yields, while data affirming stubborn inflation in Britain sent London stocks lower.

The continentwide STOXX 600 index dipped 0.1. The exporterheavy FTSE 100 index fell 0.1, tracking a jump in the pound following the UK inflation data.

British consumer price index defied expectations of a slowdown and held at 8.7 in May. The data comes a day before the Bank of England39;s policy meeting, where it is forecast to raise interest rates for a thirteenth time in a row.

The reading also served as a stark reminder that the fight against inflation by major central banks is not over yet, sending Germany39;s twoyear government bond yield , the most sensitive to rate expectations, to its highest since March 10.

Inflation had been expected to fall at least a bit but it hasn39;t obliged, remaining stubbornly sticky and cementing the prospect of a rate rise tomorrow, said Danni Hewson, head of financial analysis at AJ Bell.

The report has also raised the expectation that BoE39;s hike will be higher than previously anticipated, Hewson added.

Investors also await U.S. Federal Reserve Chair Jerome Powell39;s twoday testimony before lawmakers, where he will likely be questioned on whether rates will…