UK DATA: Oct Producer Output Prices +0.1% m/m; +2.5% y/y
-Oct Core Producer Output Prices +0.1% m/m; +1.4% y/y
-Oct Input Prices +0.4% m/m; +0.1% y/y
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Output price inflation remained stable in October as increases
tobacco and alcohol prices were offset by declines in petrol product
prices. While input prices rose by a little more than expected the
output price figures were broadly as forecast and add little to the
debate on monetary policy. Overall output price inflation looks to have
troughed in July, but at 2.5% remains low by historical standards.
Output prices rose 0.1% on the month in October and were up 2.5% on the
year, unchanged from August. Analysts had expected a slightly larger
increase of 0.2% on the month and 2.6% on the year. Core output prices
were up 0.1% on the month and 1.4% on the year, in line with the median
forecast.