Latest data released by ONS - 18 December 2019

  • Prior +1.5%
  • CPI +0.2% vs +0.2% m/m expected
  • Prior -0.2%
  • Core CPI +1.7% vs +1.7% y/y expected
  • Prior +1.7%

The bright side is that annual headline inflation is seen holding steady and not weakening further last month. The core reading is also seen keeping steady so that will be comforting for the pound in the sense that it won't pressure the BOE into acting quicker.

That said, price pressures are still sitting under 2% with the potential threat of falling off so unless they improve in the coming months, it may still require BOE action sooner rather than later to stem the bleeding here.

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 +0.5% vs +0.8% y/y expected
  • PPI input -0.3% vs 0.0% m/m expected
  • PPI input -2.7% vs -2.6% y/y expected
  • RPI +0.2% vs 0.0% m/m expected
  • RPI +2.2% vs +2.0% y/y expected
  • October HPI +0.7% vs +1.5% y/y expected
  • Prior +1.3%