European shares muted ahead of U.S. inflation data

(Reuters) - European shares were subdued on Wednesday as investors remained cautious ahead of U.S. inflation data that is expected to provide more clues on Federal Reserve's policy decision next month.

The pan-European STOXX 600 index inched up 0.1% by 0707 GMT. Real estate shares led the gains, rising 1.3%, while food and beverages slid 0.6%.

Miners lost 0.6% after rallying in the previous session.

All eyes will be on U.S. data, due at 1230 GMT (0830 ET), which is expected to show a moderation in consumer prices growth in March from a month ago but still high on a yearly basis.

Investors are still digesting International Monetary Fund's (IMF) warning that lurking financial system vulnerabilities could erupt into a new crisis and slam global growth this year.

Luxury group LVMH, Europe's most valuable company, is due to report first-quarter sales after the markets close, which will also be watched for indications on the strength of China's recovery.

Shares of AB Volvo jumped 7.4% as the truck maker reported record first-quarter profit on higher revenue and margins.

(Reporting by Shubham Batra in Bengaluru; editing by Uttaresh Venkateshwaran)