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UK Dec PPI sees input prices surge on higher oil; weak output price pass-through
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inspector_monkfish
Posts: 9,276 Forumite
09:37 14Jan11 FCT-4CAST - GBP Data: UK Dec PPI sees input prices surge on higher oil; weak output price pass-through
Higher oil prices and snow-induced supply-side disruption have pushed UK input prices up 3.4% on the month (12.5%y/y), hugely exceeding market expectations of a 1.7%m/m increase, while core output prices reflect comparatively mild pass through to consumers, up 0.5%m/m and 4.2%y/y (Core just +0.2%m/m).
Though the recent EUR/GBP decline could limit the upside, rising commodity prices look set to keep input price inflation a concern for UK producers, and as energy providers increase charges in spite of fragile domestic demand, evidence of such pipeline pressures will only heighten wider inflationary concerns and keep the upward trend in CPI a dominant issue for the BoE MPC, albeit unlikely to respond to market pressure to hike rates just yet.
Higher oil prices and snow-induced supply-side disruption have pushed UK input prices up 3.4% on the month (12.5%y/y), hugely exceeding market expectations of a 1.7%m/m increase, while core output prices reflect comparatively mild pass through to consumers, up 0.5%m/m and 4.2%y/y (Core just +0.2%m/m).
Though the recent EUR/GBP decline could limit the upside, rising commodity prices look set to keep input price inflation a concern for UK producers, and as energy providers increase charges in spite of fragile domestic demand, evidence of such pipeline pressures will only heighten wider inflationary concerns and keep the upward trend in CPI a dominant issue for the BoE MPC, albeit unlikely to respond to market pressure to hike rates just yet.
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Glad I have some of those NS&I index linked, tax free savings certificates tucked away.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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