(Reuters) – UK’s FTSE indexes were subdued on Wednesday, as hotter-than-expected inflation data tempered expectations for quick interest rate cuts, and overshadowed optimism around software company Sage’s upbeat quarterly profit.

The export-focused FTSE 100 edged up 0.07%, with the technology sector surging 6.9% to touch a record high.

Sage Group reported a better-than-expected 21% rise in operating profit, driven by a 220 basis points margin increase, and said it expected further progress this year, sending its shares up 19% to a record high.

Investors around the world were also awaiting a quarterly report from U.S.-based chip company Nvidia late on Wednesday.

However, the FTSE 250 index, which is more sensitive to domestic issues, dipped 0.2% as data showed inflation rose by more than expected in October, back above the Bank of England’s 2% target, aided almost entirely by an increase in regulated domestic energy tariffs.

Expectations were bolstered that the Bank of England will err on the side of caution and leave interest rates unchanged in December, while traders expect borrowing costs to be reduced by a little more than 50 basis points by next December.

“Today’s data might represent a slight dent in the disinflation story. Over the coming months, we will be looking for clear signs that services inflation is going to keep falling, rather than stabilise at its still-elevated levels,” said Chris Hare, senior economist at HSBC Global Research.

Real-estate related stocks including household goods and home construction lost over 2%, while real estate investment trusts and real estate companies dropped over 1% each.

Among others, British Land fell 1.4%. The commercial property firm reported a marginal rise in half-year profit.

Severn Trent rose 3.3% and was among top FTSE 100 gainers after posting a higher first-half profit and forecast capital expenditure for the year to come at the top end of its guidance.

(Reporting by Johann M Cherian in Bengaluru; Editing by Maju Samuel)