Energy companies boosted UK’s main stock index on Wednesday, with investors parsing key inflation data for clues on the future course of domestic policy and keenly awaiting the US Federal Reserve’s interest-rate decision later in the day.

The FTSE 100 index was up 0.3% as of 0900 GMT, but still hovering around the near one-month low hit on Tuesday.

The domestically focussed FTSE midcap 250 edged up 0.1%.

Energy was among the top sectoral gainers, up 0.7%, likely boosted by higher crude oil prices.

Meanwhile telecom stocks were the worst hit with a 1.2% decline.

Just a day ahead of the Bank of England’s rate decision, data showed British inflation rose to an eight-month high in November.

But offering some relief was an underlying measure of price growth holding steady, weighing on the sterling and in turn, also boosting stocks.

“Coming on the back of the stronger-than-expected rebound in wage growth in yesterday’s release, there is almost no chance of the BoE delivering an early Christmas present with another interest-rate cut tomorrow,” said Paul Dales, chief UK economist at Capital Economics.

Traders expect the BoE to cut rates by around 58 basis points in 2025, versus the 53 bps seen prior to the data, LSEG data showed.

UK stocks fall after surprise contraction in Oct GDP

This week’s main event is the Fed’s policy outcome later in the day, where a 25-bps cut is expected.

All eyes will be on the summary of economic projections and comments from Chair Jerome Powell for any hints on next year’s policy easing.

Kingfisher rose 1% after the home improvement retailer agreed to sell its loss-making Brico Depot Romania business to Altex Romania for an enterprise value of 70 million euros ($74 million).

OSB Group slumped 7%, and was among the top decliners on the FTSE 250 index, after Peel Hunt downgraded the British lender’s stock.