(Updates with analyst comment, market open prices)

By Nikhil Sharma

Aug 18 (Reuters) - Canada's main stock index inched

lower on Monday as investors avoided big bets ahead of domestic

inflation data due on Tuesday and a key U.S. central bank

conference starting on Friday.

At 9:55 a.m. ET (1355 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was down 0.17% at 27,858.27

points.

The U.S. Federal Reserve's annual economic policy

symposium in Jackson Hole, Wyoming, starts on Friday, which

investors will watch for clues on monetary policy.

"There are a lot of expectations that the Fed coming out

of this meeting will end up taking a more supportive approach,"

said Shiraz Ahmed, founder & CEO of Sartorial Wealth Inc.

"A lot of investors are just in a wait-and-see pattern

at the moment."

According to the CME Group's FedWatch tool, traders are

pricing in an 85.1% likelihood for a September interest rate

cut.

Investors will also watch out for Tuesday's Canadian

inflation data for July. A Reuters poll of economists expects

the annual rate to have slowed to 1.8% last month.

Any decline in the domestic inflation rate could prompt

the Bank of Canada to slash rates. The central bank at its last

policy meeting suggested it will cut if the economy weakens and

inflation stays contained.

Later in the day, U.S. President Donald Trump will

meet

Ukrainian President Volodymyr Zelenskiy and European

leaders after Trump's dialogue with Russian President Vladimir

Putin on Friday failed to produce a peace agreement.

TSX's energy index led losses on Monday, down

0.8%, hurt by lower crude prices ahead of the Trump-Zelenskiy

meeting. Materials lost 0.6%.

Capped communications and consumer staples

capped overall losses, gaining 0.9% and 0.5%,

respectively.

Air Canada ( ACDVF ) fell 2.6% after suspending

third-quarter and annual profit forecasts as its planes remained

grounded after striking flight attendants defied a

return-to-work order.