-Aug Producer Output Prices +0.5% m/m; +2.2% y/y
-Aug Core Producer Output Prices +0.1% m/m; +1.2% y/y
-Aug Input Prices +2.0% m/m; +1.4% y/y

LONDON (MNI) – Output price inflation edged up in August for the
first time in six months, boosted by petrol and chemicals, figures
released by National Statistics showed Friday.

The data could mark a turning point for inflation. Having fallen
sharply since September 2011 these latest figures could be a signal that
we’ve already reached the low point for this year. With input prices
rising strongly in July, this will also feed through to output price
inflation in the coming months, with potential consequences for
inflation at the consumer level.

Output prices rose 0.5% on the month and were up 2.2% on the year,
an increase from the annual rate of 1.8% recorded in July. This was the
largest jump in inflation between months since January 2011 and the
first increase since February 2012.

The latest increase was above the median forecast for a rise of
0.1% on the month and 1.3% on the year.

Input prices rose 2.0% on the month and by 1.4% on the year, above
the median for a 1.6% monthly rise and 1.1% increase on the year.

The main upward impact was crude oil, with prices up sharply on the

–London bureau: 0044 20 7862 7491; email: puglow@marketnews.com