UK DATA: Nov producer output prices +0.3% m/m; +3.9% y/y
–Nov core producer output prices +0.2% m/m; +3.3% y/y
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Output prices rose 0.3% m/m in Nov causing inflation to ease to 3.9%
from 4% in October. The increase was a little lower than the median
forecast for an increase of 0.4% m/m and 4.1% y/y. Core prices which
exclude food, beverages, tobacco and petrol rose 0.2% m/m and by 3.3%
y/y up a little from 3.2% y/y in the previous month. Output prices were
driven higher by rising petrol, food, computer and elec and optical
products. Overall both headline and core output price inflation have
remained broadly stable over the past few months helped by less pressure
on petrol prices this year compared to last in spite of upward pressure
from other areas such as food.