Latest producer price index figures in the UK for the month of December - released by ONS - 16 January 2018

  • Prior m/m +0.3%; revised to +0.4%
  • PPI output NSA y/y +3.3% vs +2.9% expected
  • Prior y/y +3.0%; revised to +3.1%
  • PPI input NSA m/m +0.1% vs +0.4% expected
  • Prior m/m +1.8%; revised to +1.6%
  • PPI input NSA y/y +4.9% vs +5.3% expected
  • Prior y/y +7.3%
  • PPI output core NSA m/m +0.3% vs +0.2% expected
  • Prior m/m +0.2%
  • PPI output core NSA y/y +2.5% vs +2.3% expected
  • Prior y/y +2.2%; revised to +2.3%
  • House price index (Nov) y/y +5.1% vs +4.2% expected
  • Prior y/y +4.5%; revised to +5.4%

Sterling falls, as CPI meets expectations and falls on the month - more to do with the core inflation number being under expectations. But it's a minor dip - 15 pips!

PPI figures are solid though, but input figures y/y declined modestly. So, that helps a little in case of prices translating to an overshoot in the inflation figures moving forward.

GBP/USD now at 1.3767 while EUR/GBP is up a little to 0.8881.