2018 Economic Calendar
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United Kingdom : PPI  
Released On 2/13/2018 4:30:00 AM For Jan, 2018
PriorPrior RevisedConsensusActual
Output-M/M0.4 %0.2 %0.1 %
Output-Y/Y3.3 %3.0 %2.8 %
Input-M/M0.1 %0.6 %0.5 %0.7 %
Input-Y/Y4.9 %5.4 %4.1 %4.7 %

Highlights
Factory gate prices were up a smaller than expected 0.1 percent on the month in January. This was their seventh successive advance but also the smallest of the sequence and soft enough to reduce annual inflation from 3.3 percent to 2.8 percent.

The minor monthly gain was mainly due to petroleum products (1.3 percent) alongside paper and printing (0.6 percent) and chemical and pharmaceuticals (also 0.6 percent). Food (minus 0.3 percent) saw the steepest decline. As a result, the core output price index gained 0.3 percent from December and was 2.3 percent higher on the year, a tick short of its annual rate last time.

Meantime, raw material costs were up 0.7 percent versus December which saw their yearly rate drop 0.7 percentage points to 4.7 percent, its lowest mark since July 2016. In large part this reflects the diminishing impact of the pound's depreciation as annual imported inflation was only 3.5 percent, a near-17 percentage point decline versus a year ago. Indeed, sterling's trade weighted index in January was 2.6 percent above its year ago level. On the month, the main boost to costs came from crude oil (4.9 percent) although this was partially offset by weaker imported food (minus 3.1 percent).

The PPIs are well enough behaved to suggest that pipeline inflation pressures in goods producing industries are not building significantly. This will not stop the BoE tightening again soon, but gradual and limited rate hikes still look the most likely scenario.

Definition
The Producer Price Index (PPI) measures the prices of goods bought and sold by manufacturers. The input price index measure the prices of materials and fuels purchased by manufacturers for processing. These are not limited to just those materials used in the final product, but also include what is required by the company in its normal day-to-day running. The output price index captures prices charged by manufacturers as they pass through the factory gate and excludes any VAT or similar deductible tax. Both measures may be seen as leading indicators of consumer price index (CPI) inflation although the short-term correlation is only very weak.  Why Investors Care
 
 

2018 Release Schedule
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