FTSE 100 rises after positive inflation data; focus on Fed, BoE meetings

June 18 (Reuters) - Britain's FTSE 100 rose on Wednesday as investors weighed positive inflation data ahead of key central bank meetings in the U.S. and the UK, though Middle East tensions tempered market optimism.

The blue-chip FTSE 100 index .FTSE, with its exposure to oil stocks, rose 0.2% by 0930 GMT. The domestically focussed mid-cap index .FTMC was unchanged.

British inflation slowed in May, with services price inflation - a crucial metric for the Bank of England - cooling to 4.7% from 5.4% in April, matching the top bank's forecast for May.

The central bank is slated to meet on Thursday and is widely expected to hold base rate. However, the inflation data has given it room to make further cuts.

"Investors and homeowners will be looking hard at today's figures, trying to gauge whether what feels like a stabilising inflationary environment will give the Monetary Policy Committee room to make a further cut to interest rates," said Nick Saunders, CEO of investment platform Webull.

"It feels too early, but the tranquil waters give hope for optimism. Certainly, the voting split will be scrutinised hard."

The conflict between Iran and Israel entered its sixth day, with increasing concerns over direct U.S. military involvement after U.S. President Donald Trump called for Iran's "unconditional surrender."

Pharmaceutical and biotechnology stocks .FTNMX201030 were under pressure, with GSK GSK.L and AstraZeneca AZN.L both down more than 1%, after Trump said pharma tariffs were coming soon.

The Personal Goods Price Index .FTNMX402040 also faced selling pressures. Burberry BRBY.L, Dr. Martens DOCS.L and Moonpig Group MOONM.L were among top decliners on the mid-cap.

In individual stocks, electronics retailer AO World AO.L slipped 3.2% despite reporting a 27% rise in annual profit.

Across the Atlantic, the Federal Reserve's policy decision later in the day will be under scrutiny as investors try to gauge expectations for upcoming rate cuts.

Other economic data showed that UK house price growth halved in April.

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