* Britain's Ocado Retail returns to growth in number of items sold

* Tour operator TUI confirms FY outlook on strong bookings

* B&Q owner Kingfisher cuts profit forecast as Poland, France drag

* STOXX 600 up 0.2%, Germany's DAX flat

Sept 19 (Reuters) - European shares edged higher on Tuesday in choppy trading as cautious investors awaited a slew of central bank decisions this week, while Germany's DAX lagged regional peers as weakness in industrial stocks weighed.

The pan-European STOXX 600 index inched 0.2% up by 0817 GMT, while Germany's DAX was flat.

Energy stocks gained 0.8% as crude prices rallied on supply deficit concerns.

Financial sectors such as insurance and financial services climbed 0.7% and 0.8%, respectively.

UBS rose 0.5% after its CEO said the momentum was pretty positive at the Swiss bank, which manages $5.5 trillion in assets since merging with former rival Credit Suisse earlier this year.

Capping gains on STOXX 600, industrials extended losses for a second straight session, with Germany's Deutsche Post easing 2.6%. Rate-sensitive technology stocks slipped for their third straight session.

Euro zone inflation numbers for August will be closely watched later in the day, after the European Central Bank (ECB) hiked rates last week to a record level of 4%.

Investors remained cautious ahead of interest rate decisions by major central banks this week, including the U.S. Federal Reserve on Wednesday and Bank of England, Swiss National Bank, Riksbank, and Norges Bank on Thursday.

Adding to nerves, the euro area's benchmark 10-year Bund yield approached its highest levels in over 12 years on Tuesday after ECB officials reiterated that rates would stay at the current levels for an extended period.

"With the ECB setting policy for 20 countries, diverging views near the end of the cycle is unsurprising," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

"The ECB's rate increase last week narrows the premium offered by the U.S., and we don't expect rate cuts from the euro zone's central bank until at least June next year."

Results from retailers were mixed, with Kingfisher dropping 6% to the bottom of STOXX 600 after the European home improvement retailer cut its annual profit forecast.

British online supermarket Ocado Retail maintained its full-year outlook, lifting parent companies Ocado Group and Marks & Spencer 3.0% and 1.3%, respectively.

Meanwhile, tour group TUI climbed 6.4% on confirming its full-year outlook for financial year 2023, citing strong bookings in the summer and upcoming winter season.

Swedish paper and packaging company Billerud gained 7.9% as Jefferies raised its rating to "buy."

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich and Janane Venkatraman)