UK Nov PPI data now out 12 Dec
- yy 3.0% vs 3.0% vs 2.8% prev
- core PPI output NSA mm 0.2% vs 0.2% exp vs 0.1% prev
- yy NSA 2.2% vs 2.2% exp vs 2.1% prev
- PPI input NSA mm 1.8% vs 1.5% exp vs 1.05 prev
- yy 7.3% vs 6.7% exp vs 4.8% prev rev up from 4.6%
Not a lot to glean here. Very steady but input price bias to the topside. Focus is on CPI which comes a bit stronger than expected and sees GBPUSD leap a massive 15 pips so far with rally tempered by unchanged core reading yy at 2.7%
GBPUSD currently 1.3368 with offers at 1.3380 and larger around 1.3400. EURGBP down looking to test 0.8800
Says the ONS:
- All industries provided upward contributions to both input and output annual inflation; the largest contributors to the change in the annual rates were crude oil and petroleum products respectively.
Full report here.
The BOE won't be fazed by the stronger reading. All part and parcel of their latest inflation forecasts with expectations of it peaking around here around now.