UK May CPI +0.4% vs +0.4% m/m expected
Latest data released by ONS - 13 June 2018
- Prior +0.4%
- CPI +2.4% vs +2.4% y/y expected
- Prior +2.4%
- Core CPI +2.1% vs +2.1% y/y expected
- Prior +2.1%
Bang in line with estimates but cable slipped to a low of 1.3312 following the release. At first glance, there's nothing much to gather from report. Looking into the details now.
Of note, the cost of fuels and lubricants posted its biggest monthly rise since January 2011 - which once again highlights the effect of rising oil prices. Though ONS says that the fall in cost of computer games offset the gains seen there with slightly smaller increases in energy costs compared to a year ago as well.
All in all, the report doesn't offer much. A steady reading as per last month means that things just gets kicked down one month further - with no change to the real wage outlook as well. GBP/USD fell to a low of 1.3312 on the release but now is basically unchanged since before the data was out, trading at 1.3330.
Some other details on the day as producer price and retail price figures are released:
- PPI output +0.4% vs +0.3% m/m expected
- PPI output +2.9% vs +2.9% y/y expected
- PPI input +2.8% vs +1.8% m/m expected
- PPI input +9.2% vs +7.6% y/y expected
- RPI +0.4% vs +0.4% m/m expected
- RPI +3.3% vs +3.4% y/y expected
- April HPI +3.9% vs +4.2% prior