Latest data released by ONS - 19 December 2018

  • Prior +0.1%
  • CPI +2.3% vs +2.3% y/y expected
  • Prior +2.4%
  • Core CPI +1.8% vs +1.8% y/y expected
  • Prior +1.9%

CPI figures are in-line with estimates there so there's nothing that really jumps out from the report here. Looking into details, ONS says that the downward effect from lower petrol prices had been partially offset by higher tobacco taxes resulting in the slight softness here. Overall, nothing much to gather from the report here as it doesn't add anything new to the BOE rhetoric at this point in time.

Cable holds rather unchanged from the release at 1.2650 currently as the pound barely budged on the data releases here. EUR/GBP holds higher on the day at 0.9013 as the euro is leading the major currencies bloc on the day.

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

  • PPI output +0.2% vs 0.0% m/m expected
  • PPI output +3.1% vs +3.0% y/y expected
  • PPI input -2.3% vs -2.8% m/m expected
  • PPI input +5.6% vs +5.0% y/y expected
  • RPI 0.0% vs +0.1% m/m expected
  • RPI +3.2% vs +3.2% y/y expected
  • October HPI +2.7% vs +3.5% y/y prior; revised to +3.0%