FTSE 100 flat, FTSE 250 down 0.1
UK GDP grows 0.4 in May, sterling hits fourmonth high
US CPI in focus

July 11 Reuters UK shares were flat on Thursday, as losses in aerospace and defence stocks offset broader gains across other sectors, while focus remained on U.S. inflation data for clues on the Federal Reserve39;s interest rate path.

The bluechip FTSE 100 index was flat, while the midcap FTSE 250 index was down 0.1 at 0725 GMT.

Meanwhile, data showed that the UK39;s economy grew more quickly than expected in May, potentially lowering the chances of an August rate cut. The sterling rose to its highest in four months after the data.

Goldman Sachs raised the country39;s GDP growth forecast to 1.2 from 1.1 for the year.

Focus is now on the U.S. consumer price index due at 1230 GMT, that could influence the course of rate cuts in the world39;s biggest economy.

The data follows Federal Reserve Chair Jerome Powell39;s twoday Congressional testinomy where he said that the cooling jobs market was now on the radar of Fed39;s policymakers, along with inflation.

Today39;s CPI update will determine the market mood. Investors will likely be less upset if they see any bump or blip in inflation as long as other economic data including growth and jobs continue to show further weakness, said Ipek Ozkardeskaya, senior analyst, Swissquote Bank.

Beverages and utilities topped sectoral gains, rising 0.5 each.

Heavyweight precious metal miners advanced 0.1 in tandem with gold…