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* FTSE down 0.1%, FTMC down 0.4%

* UK CPI holds at 13-month low of 2.8% in May

* BoE expected to keep interest rates at 3.75% on Thursday

June 17 (Re - UK stocks edged lower on Wednesday, with consumer staples and energy shares

weighing, as investors assessed steady inflation ahead of the Bank of England's rate decision.

The blue-chip FTSE 100 index fell 0.14% to 10,479.77 points by 0936 GMT, while the

midcap FTSE 250 slipped 0.4%.

* British inflation unexpectedly held at 2.8% for May, compared with a 3% rise economists

polled by Reuters had expected, prompting traders to slightly trim their expectations for a rate

hike later this year.

* "For the investor it is a dilemma; good news for the economy's resilience is bad news as

it justifies a rate hike," said Nick Saunders, CEO of online investment platform Webull UK.

* Consumer staple stocks declined with British American Tobacco falling 1.7%.

* Utilities shares fell the most among sectors, slipping 1.1%.

* Oil prices were steady, trading below $80 a barrel. Oil giants BP and Shell

L> were down 0.7% each.

* Among heavyweight banks, Barclays ( BCS ) rose 2% after BofA Global Research raised its

price target, while peer Standard Chartered ( SCBFF ) gained 1.3%.

* British house prices rose in the year to April, data showed on Wednesday, sending

homebuilders up 1.5%.

* Hays rose 1.5% after the recruiter sold its businesses in six European countries.