UPDATE 2-Consumer discretionary, oil stocks pull FTSE 100 higher; Cineworld rises

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* Cineworld rises as crowds return to cinemas after UK lockdown

* Premier Foods climbs after brokerages raise target price

* FTSE 100 up 0.5%, FTSE 250 adds 0.4% (Updates with market close)

May 24 (Reuters) - London’s FTSE 100 edged higher on Monday after posting its second straight weekly drop, while Cineworld Group gained following a strong weekend opening after a months-long lockdown in the UK.

The blue-chip index rose 0.5% with consumer discretionary stocks, mainly Compass Group Plc, Flutter Entertainment and Entain rising between 2.2% and 2.7%.

Oil majors Royal Dutch Shell and BP were also among the biggest risers on the index, rising 9.8% and 4.2%, respectively.

The domestically focused mid-cap FTSE 250 index advanced 0.4%. Cineworld rose 3.2% after the world’s second-largest cinema chain said its UK cinemas pulled in more people than expected, helped by Sony Pictures’ animated adventure comedy “Peter Rabbit 2: The Runaway”.

Globally, stocks struggled for momentum as investors awaited key U.S. inflation readings for guidance on monetary policy.

“Observers will be asking if this is the week the FTSE 100 finally pushes ahead of the 7,000 mark after a period of going backwards and forwards around this level,” said Russ Mould, investment director at AJ Bell.

Bank of England Governor Andrew Bailey said that he does not see long-term implications from a pick-up in inflation which the BoE expects this year as the economy emerges from the coronavirus pandemic.

After rising 9.1% in the first four months of this year on recovery optimism, the FTSE 100 has traded in a tight range in the past few sessions as concerns grew that central banks might pare back their support early as economies reopen and inflation picks up.

Kainos Group fell 1.8%, even after the digital services company posted a 124% jump in its annual adjusted pretax profit.

Chilean miner Antofagasta fell 0.9% after RBC cut its price target on the stock, while Mr Kipling owner Premier Foods climbed 5.9% after brokerages raised their price targets. (Reporting by Shivani Kumaresan and Devik Jain in Bengaluru; Editing by Subhranshu Sahu and Nick Macfie)