UK DATA: 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% m/m; +1.4% y/y
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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.