FTSE 100 down 0.2, FTSE 250 off 0.9
UK inflation jumps more than expected
Sage jumps on betterthanexpected rise in operating profit
Investors focus on Nvidia39;s results after the US bell

Nov 20 Reuters The UK39;s FTSE 100 share index dipped on Wednesday, as hotterthanexpected inflation data tempered expectations for quick interest rate cuts, and overshadowed optimism around software company Sage39;s upbeat quarterly profit.

The exportfocused FTSE 100 closed down 0.2, but the technology sector index surged 6.2 to touch a record high.

Sage Group reported a betterthanexpected 21 rise in operating profit, driven by a 220basispoint margin increase, and said it expected further progress this year, sending its shares up 18 to an alltime high.

The domestically focussed FTSE 250 index dropped 0.9 to a more than threemonth low, as data showed annual inflation rose by more than expected in October, back above the Bank of England39;s BoE 2 target, aided almost entirely by an increase in regulated domestic energy tariffs.

The data bolstered expectations that the BoE will move cautiously on its rate cutting path, with traders pricing in a little more than 60basispoint reduction by the end of next year.

Today39;s data might represent a slight dent in the disinflation story. Over the coming months, we will be looking for clear signs that services inflation is going to keep falling, rather than stabilise at its stillelevated levels, said Chris Hare, a senior economist at HSBC…