FOREX-Dollar falls after smaller-than-expected rise in U.S. inflation, euro edges higher after ECB decision

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US inflation data increase less than expected

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Trump says next Fed chair to favour lower rates 'by a lot'

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BoE cuts rates in tight 5-4 vote

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ECB holds rates steady

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Markets look for catalysts from key central bank decisions

By Chibuike Oguh and Samuel Indyk

NEW YORK/LONDON, Dec 18 (Reuters) - The dollar lost ground against its major counterparts on Thursday after data showed a lower-than-expected rise in U.S. inflation, while sterling turned higher as a deeply divided Bank of England cut rates.

U.S. inflation rose 2.7% year-on-year in November, according to Labor Department data, compared with a 3.1% increase forecast by economists polled by Reuters.

The dollar weakened 0.14% to 155.43 against the Japanese yen and was down 0.26% to 0.793 against the Swiss franc . The euro edged higher after the European Central Bank kept its policy rates steady and took a more positive view on a euro zone economy that has shown resilience to global trade shocks.

The euro was last up 0.12% at $1.1753 against the dollar.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.15% to 98.22.

(Reporting by Samuel Indyk in London, Rocky Swift in Tokyo, Ankur Banerjee in Singapore Editing by Kate Mayberry, Kirsten Donovan)