London's FTSE 100 inched higher on Tuesday amid broader gains in the run-up to crucial inflation numbers in the United States and the UK, while cart parts supplier Dowlais Group lagged the mid-caps.

The blue-chip FTSE 100 index was up 0.3%, while the mid-cap FTSE 250 index added 0.1% by 0712 GMT.

The indexes were set to extend their rally for a third consecutive session after closing lower for a second straight week on Friday.

Pharma and biotech and industrial support services led broader gains in London with a 0.7% rise each.

Most sectors trended upwards, while automobile and parts lead declines, pulled down by a 10.2% fall in Dowlais Group.

The company sank to the bottom of the FTSE 250 after it said it was exploring a potential sale of its GKN Powder Metallurgy unit, among other options, and cut its annual revenue forecast.

The sectoral index fell to its lowest level since early 2009.

Industrial metal miners dipped 0.5% on easing copper prices as investors turned to profit-taking.

Meanwhile, data out of the UK showed a slowdown in average earnings growth and an unexpected fall in the unemployment rate, pushing the pound up against the dollar.

"The further easing in wage growth will be welcomed by the BoE as a sign that labour market conditions are continuing to cool, but we think it will pause in September," said Ruth Gregory, deputy chief UK economist at Capital Economics in a note.

Investor focus has returned to a slew of economic data this week in the U.S. and at home, after weak data stoked recessionary fears in the U.S. and had, in part, triggered an equity sell-off last week.

Among other stocks, Just Group surged 10% to top the FTSE 250 after it said it expected to exceed its previous 2024 profit forecast after its first-half earnings surpassed market expectations.

(Reporting by Purvi Agarwal in Bengaluru; Editing by Janane Venkatraman )