Latest data released by ONS - 21 October 2020

  • Prior +0.2%
  • Core CPI +1.3% vs +1.3% y/y expected
  • Prior +0.9%

Slight delay on the release by the source. The largest contribution to the boost in inflation came from recreation and culture with a jump in transport costs and restaurant, cafe prices being the standout upon the end of the 'eat out to help out' scheme.

As such, it remains to be seen if this temporary lift in inflation will be sustainable but for now, this doesn't give the BOE much to work with ahead of the year-end.

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

  • PPI output -0.1% vs 0.0% m/m expected
  • PPI output -0.9% vs -0.9% y/y expected
  • PPI input +1.1% vs -0.3% m/m expected
  • PPI input -3.7% vs -5.4% y/y expected
  • RPI +0.3% vs +0.3% m/m expected
  • RPI +1.1% vs +1.1% y/y expected