European shares fall ahead of March inflation data

(Reuters) - European shares fell on Wednesday, as investors scrutinised UK inflation data and corporate earnings while awaiting euro zone March inflation data for more clues on European Central Bank's monetary tightening path.

The pan-European STOXX 600 index declined 0.2% by 0710 GMT, with rate-sensitive real estate and technology shares down 1.6% and 1.7% respectively on hawkish comments by ECB officials signalling more rate hikes.

Foods and beverages index limited the declines, rising 0.5%.

Britain now has Western Europe's highest rate of consumer price inflation, despite falling to 10.1% in March from February's 10.4%.

Investors will closely monitor euro zone inflation, due at 0900 GMT, expected to rise 6.9% in March on a yearly basis from the same pace in February.

Heineken NV rose 3.2% after it reported a steeper-than-expected decline in first-quarter beer sales but maintained its forecast for profit growth in 2023.

Worldline SA climbed 5.7% after began exclusive talks with French bank Credit Agricole SA to form a merchant services joint venture.

(Reporting by Shubham Batra in Bengaluru; Editing by Varun H K)