UK DATA: Sep producer output prices +0.3% m/m; +4.4% y/y
–Sep core producer output prices +0.4% m/m; +4.6% y/y
–Sep producer input prices +0.7% m/m; +9.5% y/y
————————————————————————
Output prices rose by 0.3% m/m in Sep causing inflation to decelerate to
4.4% from 4.7% in Aug. The outturn, though, was still a little higher
than the median for an increase of 0.1% m/m and 4.3% y/y. Core output
prices were also stronger than than the median of 0.1% m/m; 4.2% y/y.
Output prices were boosted mainly by other manufactured which is mainly
due to recycling costs which are going to be removed from the index
next month. This is set to cut annual output price inflation by at least
0.5pp and likely more. Input prices were up 0.7% m/m, above the
median forecast of 0.3% mainly due to rises in imported metal prices and
chemicals.