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May 31 (Reuters) - European shares had a muted start on

Friday ahead of the May inflation reading for the euro zone and

an April reading for the United States that will decide the

scale and timing of the interest rate cuts globally.

The pan-European STOXX 600 index was flat by 7:12

GMT. The benchmark index is on track for a second week of

declines but is likely to log gains on a monthly basis.

Investors are squarely focussed on the inflation print from

the euro zone at 0900 GMT, which is expected to show a slight

uptick in May. A rate cut in June is all but certain next week

by the ECB, a Reuters poll showed.

April report on the U.S. core personal consumption

expenditures (PCE) price index, which is the Federal Reserve's

preferred inflation gauge, will be the main event for investors

at 1230 GMT.

JD Sports Fashion dropped 6.7% to the bottom of the

STOXX 600 after the British sportswear retailer kept profit

guidance for its 2024/25 year.

Telecom Italia was also a bottom performer with

nearly a 6% fall after U.S. investment firm KKR secured

unconditional EU antitrust approval for its up to

22-billion-euro ($24 billion) acquisition of the telecom

company's fixed-line network.

IT services firm Capgemini fell 4.3% as JP Morgan

cut its rating to neutral from overweight.