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UK inflation holds at 2.2% in Aug

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Euro zone inflation at 0900 GMT

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Fed rate decision at 1800 GMT

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Campari at over four-year lows after unexpected CEO exit

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Reckitt rises on report of potential sale of homecare

assets

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STOXX 600 down 0.2%

(Updated at 0800 GMT)

By Shubham Batra

Sept 18 (Reuters) - European shares edged lower on

Wednesday, as investors stayed on the sidelines ahead of an

all-important interest rate decision by the U.S. Federal Reserve

that could mark the beginning of a monetary-easing cycle in the

world's largest economy.

The pan-European STOXX 600 index was down 0.2% at

516.15 points, led by losses in healthcare shares

following reports that Novo Nordisk's Ozempic is

"very likely" to be one of the next drugs targeted for a price

cut in the United States.

The Danish drugmaker's shares were down 1.7%.

Technology shares also pulled the markets down with

a 0.7% fall while miners slipped 0.5%.

All major European markets were trading flat to lower.

Britain's FTSE 100 dipped 0.3% after UK headline

inflation stood at an annual rate of 2.2% in August, unchanged

from July, but price growth in the services sector - closely

watched by the Bank of England - picked up.

The day will be monopolised by the U.S. central bank's

expected start of policy easing, with a decision on interest

rates due at 1800 GMT. Money markets see a 63% chance of a

50-basis-point reduction, according to CME's FedWatch Tool.

"Markets currently expect a 50-bps cut by the Fed, and it's

very unlikely the Fed will surprise investors by going 25 bps.

We expect the Fed to cut 50 bps to get ahead of downward

trending labor market data, even as the inflation fight looks

done," said Sonu Varghese, global macro strategist at Carson

Group.

Investors will also keep a close watch on the euro

zone's inflation data at 0900 GMT, while monitoring comments

from European Central Bank's supervisors Claudia Buch and

Elizabeth McCaul later in the day.

Italy's Campari slipped 6.1% to the bottom of the

benchmark index as CEO Matteo Fantacchiotti unexpectedly stepped

down after only five months at the helm.

Reckitt Benckiser ( RBGPF ) advanced 1.3% following reports

that the consumer goods giant launched early discussions with

potential suitors for a sale of its homecare assets, which could

be worth more than 6 billion pounds ($7.89 billion).

France's Ubisoft Entertainment jumped nearly 5% to

the top of STOXX 600 after BMO Capital Markets raised the rating

on the stock to "outperform".