Sharecast - The FTSE 100 was up 0.6% at 7,833.10.
The consumer price index for March is due at 1330 BST, while the minutes are scheduled for release at 1900 BST.
Russ Mould, investment director at AJ Bell, said: "There is one key thing dominating the agenda today - US inflation figures. Markets have recently taken the view that the Fed needs to ensure stability in the financial system following the banking crisis. That means easing back on rate hikes which could topple the economy.
"However, the reason why rates have been going up so fast over the past 12 months is down to rising inflation, so today’s update on the cost of living in March will still matter to the Fed and its monetary policy. The consensus forecast is a 5.6% rise in core inflation year-on-year, up slightly on February’s 5.5% reading.
"The rate of inflation in the US has been easing back since October 2022, providing some relief to consumers and businesses. However, if the rate comes in higher than expected at today’s reading then markets could easily throw their toys out of the pram. It would also stir the pot that the Fed might need to stay on its current path with rate rises.
"Further insight into the Fed’s current thinking will be found in the latest minutes of its interest rate committee meeting, published later today."
On home shores, the latest data from Rightmove showed that home sales in March rebounded close to pre-Covid pandemic levels, driven by demand for flats and a recovery from the market slump last September caused by the disastrous mini-budget of former prime minister Liz Truss.
A survey by the property website showed the number of sales agreed between sellers and buyers was just 1% lower than March 2019 as loan costs fell after Truss’s £44bn plan of unfunded tax cuts caused market turmoil and saw thousands of mortgages pulled by lenders.
"The market is remaining surprisingly robust given the economic headwinds that have affected movers over the last six months," said Rightmove property expert Tim Bannister.
In equity markets, student accommodation provider Unite gained after saying it had already sold 90% of its rooms for the 2023/24 academic year, reflecting strong demand as well as new nomination agreements with universities.
Petrofac (LON:PFC) tanked after it warned of a wider full-year loss following a review of its portfolio, while Tullow Oil (LON:TLW) was knocked lower by a downgrade to ‘underperform’ at Jefferies.
Elsewhere, banknote printer De La Rue (LON:DLAR) tumbled after it warned on profits and said it has begun talks with its lenders as demand for banknotes has fallen to its lowest level in more than 20 years.