2018 Economic Calendar
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United Kingdom : PPI  
Released On 5/23/2018 4:30:00 AM For Apr, 2018
PriorPrior RevisedConsensusActual
Output-M/M0.2 %0.3 %0.3 %0.3 %
Output-Y/Y2.4 %2.7 %2.4 %2.7 %
Input-M/M-0.1 %0.1 %1.1 %0.4 %
Input-Y/Y4.2 %4.4 %5.8 %5.3 %

Highlights
Factory gate prices rose a 0.3 percent on the month in April, in line with market expectations. The annual inflation rate was 2.7 percent, unchanged from March's upwardly revised mark and so still 0.8 percentage points below December's recent peak.

The main positive contribution to the monthly change in the yearly rate came from petroleum products where prices were up 1.7 percent. Chemicals and pharmaceuticals (0.5 percent) also provided a lift. There were no declines amongst the main categories but the core index was just 0.1 percent firmer on the month. This put the annual underlying rate at 2.4 percent, down from 2.7 percent and a 5-month low.

Meantime, raw material and fuel costs rose a monthly 0.4 percent for a 5.3 percent yearly rate, up from 4.4 percent last time and their second consecutive increase but still well short of the 15.3 percent mark posted in April 2017. Costs were boosted by a 4.8 percent spurt in crude oil and would have increased more steeply but for another rise in the pound's trade weighted exchange rate (1.4 percent). Apart from home food materials (0.9 percent), this was the only monthly advance of any significance and most other categories recorded small declines.

Combined with a softer than expected April CPI (see today's calendar entry), today's pipeline inflation update should sit reasonably well with the BoE and help to keep Bank Rate at 0.5 percent for some time yet.

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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