Latest data released by ONS - 19 May 2021

  • Prior +0.7%
  • Core CPI +1.3% vs +1.3% y/y expected
  • Prior +1.1%

Right in line with estimates as this reaffirms higher inflation relative to a year ago, which owes much to base effects. ONS notes that the largest upward contributions came from housing, household services, and transport.

With the UK economic reopening underway, it will start to throw some questions to the BOE as to how much they are willing to go in terms of removing policy accommodation.

Some other details on the day as producer price and retail price figures are released:

  • PPI output +0.4% vs +0.4% m/m expected
  • PPI output +3.9% vs +2.6% y/y expected
  • PPI input +1.2% vs +1.0% m/m expected
  • PPI input +9.9% vs +8.5% y/y expected
  • RPI +1.4% vs +0.8% m/m expected
  • RPI +2.9% vs +2.4% y/y expected