Latest data released by ONS - 14 August 2019

  • Prior 0.0%
  • CPI +2.1% vs +1.9% y/y expected
  • Prior +2.0%
  • Core CPI +1.9% vs +1.8% y/y expected
  • Prior +1.8%

Solid figures once again coming from the UK with ONS noting that the increase in inflationary pressures owing to bigger rises in prices of hotel rooms, computer games and games consoles relative to a year ago.

In particular, they note that they're not seeing any clear evidence of a weaker pound pushing up consumer prices last month.

The data is good on paper but it comes at the wrong time given that it will do little to shift the BOE outlook and the current pound sentiment is largely tied to Brexit. Cable moved slightly higher to 1.2073 upon the release but is back near unchanged levels at 1.2065 now.

Some other details on the day as producer price and retail price figures are released:

  • PPI output +0.4% vs +0.1% m/m expected
  • PPI output +1.8% vs +1.7% y/y expected
  • PPI input +0.9% vs +0.6% m/m expected
  • PPI input +1.3% vs +0.3% y/y expected

  • RPI 0.0% vs 0.0% m/m expected
  • RPI +2.8% vs +2.8% y/y expected
  • June HPI +0.9% vs +1.0% y/y expected
  • Prior +1.2%; revised to +0.9%