European stocks edged higher on Friday but remained on track for their worst weekly performance since April as elevated bond yields and concerns over aggressive interest rate hikes weighed on investor sentiment ahead of key U.S. inflation data, Reuters reported.The pan-European STOXX 600 index rose 0.3% to 637.60 points by 0716 GMT, after closing at a two-month low in the previous session.Read more: Global Market: Japan's Nikkei falls 3% as oil surge, US rate hike fears weighECB Hawkish Stance Weighs on SentimentThe European Central Bank raised interest rates as expected on Thursday but warned that inflation could rise further as energy prices surge amid the prolonged conflict in the Middle East.Oil prices remained above $100 a barrel for a third consecutive day, adding to concerns over inflation and the potential for further monetary policy tightening.According to Reuters, the ECB's hawkish outlook has fueled expectations for additional rate hikes, while government bond yields around the world have climbed.The U.S. 10-year Treasury yield, a key benchmark for global borrowing costs, remained just below the closely watched 5% threshold. Germany's 10-year government bond yield also stayed near multi-decade highs.Read more: Global Market Today: Asian stocks, bonds fall on oil, inflation concernU.S. Inflation Data in FocusInvestors are now turning their attention to U.S. consumer price inflation data due later on Friday. The figures could offer fresh clues about the Federal Reserve's interest rate outlook ahead of its monetary policy meeting next week.A stronger-than-expected inflation reading could reinforce expectations for tighter monetary policy and put further pressure on equities, while softer data could ease concerns over the pace of future rate increases.Technoprobe Gains on TSMC RevenueAmong individual stocks, Italian semiconductor testing equipment maker Technoprobe rose 4.7%.The gain came after its customer Taiwan Semiconductor Manufacturing Company reported strong August revenue, boosting sentiment toward companies exposed to the global semiconductor industry.Overall, European equities remained under pressure from rising borrowing costs and renewed inflation concerns, with investors awaiting U.S. economic data for greater clarity on the path of interest rates.