*

FTSE 100 up 0.14%, FTSE 250 up 0.6%

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Food prices drive British inflation to 3.8% in August,

above US,

euro zone

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Centrica ( CPYYF ) is Morgan Stanley's top pick on nuclear momentum,

shares gain

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PRS REIT gains on selling operating unit

(Updates with market closing prices)

By Sanchayaita Roy

Sept 17 (Reuters) - British stocks rose on Wednesday,

recovering from the previous session's losses, as investors

waited for the U.S. Federal Reserve's policy decision later in

the day.

The benchmark FTSE 100 gained 0.14%, while the

domestically focused FTSE 250 advanced 0.6%.

The U.S. central bank is expected to reduce borrowing costs

by at least 25 basis points at 2 p.m. ET, after a series of

economic indicators pointed to a weakening jobs market.

Investors will also focus on Chair Jerome Powell's comments

for clues on the Fed's rate trajectory.

Data released on Wednesday showed that British inflation

held steady at 3.8% in August, the highest among major advanced

economies, reinforcing expectations that the Bank of England

will delay cutting interest rates until next year.

The rise in food prices, seen by BoE as key for shaping

public inflation expectations, was the sharpest since January

last year.

"This morning's UK inflation data supports our view that the

BoE will refrain from lowering rates again through the remainder

of 2025," said Matthew Ryan, head of market strategy at global

financial services firm Ebury.

"With swap markets assigning no chance of any change in

rates from the MPC on Thursday, the focus for investors will be

on the bank's rate guidance."

The personal goods sector was the biggest

gainer on Wednesday, up 3.9%, with Burberry ( BBRYF ) climbing

4.2%.

Automobiles and parts stocks rose 2.7%, with

luxury carmaker Aston Martin advancing the most out of

the FTSE 250 stocks, with a 7.8% gain.

Centrica ( CPYYF ) was among the top gainers on the FTSE 100,

up 3.6%, after Morgan Stanley called the energy firm a top pick.

Ice cream unit Ben & Jerry's ( UL ) co-founder Jerry Greenfield

quit the company after a rift with parent Unilever ( UL ). Its

shares ended nearly flat.

PRS REIT rose about 6% after announcing plans to

sell its operating unit to Waypoint Asset Management for 646.2

million pounds ($881 million).