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* FTSE 100 down 0.2%, FTSE 250 off 0.8%

* British CPI held at 6.7% in Sept

* Barratt Developments falls on uncertain outlook

* Whitbread up on share buyback plan

Oct 18 (Reuters) - UK stocks fell on Wednesday as higher-than-expected consumer inflation data cemented fears of the Bank of England further tightening monetary policy, while homebuilder stocks were hurt by Barratt Developments' uncertain outlook.

The FTSE 100 edged 0.2% lower, while the mid-cap FTSE 250 dropped 0.8% by 0822 GMT. Both indexes were set to snap a two-day winning streak.

Data showed British annual consumer price inflation held at an 18-month low of 6.7% in September, while the core inflation fell less than expected, raising fears of another BoE rate hike.

A rise in fuel prices between August and September put upward pressure on the annual CPI rate.

"Fuel prices are sort of one of the building blocks of inflation because it has an impact on cost of deliveries too," said Danni Hewson, head of financial analysis at AJ Bell.

British government bond prices fell, while the sterling ticked higher following the data.

Homebuilders fell 2.8% and were the top decliners among sectors, after Barratt Developments refrained from providing a full-year profit forecast, citing an "uncertain" outlook. The stock fell 2.9%.

"There is still demand for houses but mortgages are so expensive that it is creating uncertainty and making the outlook very difficult to get a clear picture of," Hewson added.

Precious metal miners added 0.3%, as the safe-haven asset was a favoured choice against war risks after a deadly blast in Gaza fuelled fears about the regional conflict escalating.

Oil and gas sector also advanced 0.5%, as the escalation of turmoil in the Middle East sparked concerns about potential disruptions in oil supply from the region.

Whitbread shares jumped 3.8% to the top of FTSE 100 after the hotelier announced a share buyback plan of 300 million pounds ($366.2 million) following a 44% rise in half-yearly profit. (Reporting by Khushi Singh in Bengaluru; Editing by Dhanya Ann Thoppil and Varun H K)