–August Producer Output Prices +0.1% m/m; +6.1% y/y
–August Core Output Prices +0.2% m/m; +3.6% y/y
–August Producer Input Prices -1.9% m/m; +16.2% y/y
LONDON (MNI) – Input prices fell sharply on the month in August
causing inflation to fall to its lowest level for five months, as the
price of crude oil declined, according to figures released by National
Statistics Friday.
Input prices fell 1.9% between July and August and were up 16.2% on
the year, the lowest since March. The fall was larger than the 1.4%
monthly drop and 17.2% annual increase predicted by economists.
The main downward impact on prices in August came from a 5.9% fall
in the price of crude oil which fell in response to renewed fears over
the outlook for global growth.
There was also downward pressure from home produced food prices
which fell 1.1% on the month. Other imported parts and equipment prices
were down 0.6% between July and August.
While there are now some signs that input price inflation may now
have peaked following sharp rises in food and oil prices earlier this
year, output price inflation remained at its highest level for nearly
three years.
Output prices rose 0.1% on the month and were up 6.1% on the year,
unchanged from last month which was the highest level of output
price inflation since October 2008. The outturn was broadly in line with
the median forecast.
Core output prices which exclude food, beverages, tobacco and
petrol rose 0.2% on the month and by 3.6% on the year, in-line with the
median forecast.
–London bureau: 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
