(Reuters) -The UK's FTSE 100 share index dipped 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 closed down 0.2%, but the technology sector index surged 6.2% to touch a record high.

Sage Group reported a better-than-expected 21% rise in operating profit, driven by a 220-basis-point margin increase, and said it expected further progress this year, sending its shares up 18% to an all-time high.

The domestically focussed FTSE 250 index dropped 0.9% to a more than three-month low, as data showed annual inflation rose by more than expected in October, back above the Bank of England's (BoE) 2% target, aided almost entirely by an increase in regulated domestic energy tariffs.

The data bolstered expectations that the BoE will move cautiously on its rate cutting path, with traders pricing in a little more than 60-basis-point reduction by the end of next year.

"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, a senior economist at HSBC Global Research.

British inflation is further expected to rise, given finance minister Rachel Reeves' recent budget containing higher employment taxes, spending and borrowing.

Investors around the world were also awaiting a quarterly report from leading AI chipmaker Nvidia late on Wednesday. The options market implied an 8.5% swing for the shares in either direction following the results.

Real estate-related stocks including household goods and home construction lost over 2.8%, while real estate investment trusts fell 1.6%.

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

(Reporting by Johann M Cherian and Nikhil Sharma in Bengaluru; Editing by Maju Samuel and Emelia Sithole-Matarise)