Latest data released by ONS - 15 August 2018
- Prior 0.0%
- CPI +2.5% vs +2.5% y/y expected
- Prior +2.4%
- Core CPI +1.9% vs +1.9% y/y expected
- Prior +1.9%
Inflation readings all in-line with expectations. Core inflation remains at the lowest levels since March 2017. Looking at the details, transport tickets, fuel, and computer games contributed the most to CPI gains while clothing and financial services were the drag in July.
The headline inflation reading ticked higher on an annual basis for the first time this year but as mentioned above, the core reading remains at its lowest since March 2017 and that is the standout of an otherwise boring report.
The pound is dragged lower a little as cable falls to 1.2708 from 1.2720 levels as there isn't anything here for bulls to get excited about really.
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 +3.1%% vs +3.0% y/y expected
- PPI input +0.5% vs +0.1% m/m expected
- PPI input +10.9% vs +10.3% y/y expected
- RPI +0.1% vs +0.2% m/m expected
- RPI +3.2% vs +3.4% y/y expected
- June HPI +3.0% vs +3.0% y/y prior; revised to +3.5%
Apart from that, house prices in London continue to fall as the May figures were revised higher. The June house price index highlighted that London dwellings have dropped to its weakest levels since 2009.
