UK August CPI 0.2% vs +0.0% y/y expected

• Prior +1.0%
• Core CPI 0.9% vs +0.5% y/y expected
• Prior +1.8%

The headline reading shows a firmer than expected figure at 0.2% vs 0.0% expected. Office for National Statistics said that largest contributor for inflation came from recreation and leisure. Downward pressure came from the UK's 'eat out to help out scheme'. A scheme that helped restaurants stay afloat as they fed the middle classes for a discount. Other downward pressure came from falling airfares.

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

• PPI output  0.0% vs +0.2% m/m expected
• PPI output  -0.9% vs -0.7% y/y expected
• PPI input  -0.4% vs 0.2% m/m expected
• PPI input  -5.8% vs -5.3% y/y expected

• RPI  -0.3% vs -0.3% m/m expected
• RPI  0.5% vs +0.6% y/y expected