2018 Economic Calendar
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United Kingdom : PPI  
Released On 6/13/2018 4:30:00 AM For May, 2018
PriorPrior RevisedConsensusActual
Output-M/M0.3 %0.4 %0.3 %0.4 %
Output-Y/Y2.7 %2.5 %3.0 %2.9 %
Input-M/M0.4 %0.6 %2.0 %2.8 %
Input-Y/Y5.3 %5.6 %8.0 %9.2 %

Overall producer prices were firmer than expected in May. Factory gate charges were up 0.4 percent on the month which, with base effects quite positive, was enough to lift the annual inflation rate by 0.4 percentage points to 2.9 percent, its highest posting so far in 2018 but still well short of the rates seen throughout 2017.

In fact, the monthly gain was anyway largely attributable to petroleum products which saw a 4.3 percent surge. Paper and printing alongside other manufactured products saw a 0.5 percent bounce but elsewhere prices were quite subdued. Consequently, the core output price index advanced only 0.2 percent for a 2.1 percent yearly rise, just a tick above April's downwardly revised mark.

Meantime, a sharp jump in oil lay behind a 2.8 percent monthly spurt in the cost raw materials and fuel. This lifted their annual growth rate from by fully 3.6 percentage points to 9.2 percent, the strongest reading since June last year. Crude oil was up 10.4 percent on the month, with base prices given an extra boost by a weaker pound. Imported metals (3.6 percent), imported parts and equipment (2.1 percent) and imported food (1.1 percent) were similarly lifted by the pound's decline.

Following news of a reasonably subdued May CPI (see today's calendar entry), the mid-quarter PPI update suggests that at least underlying pipeline inflation pressures have changed little since April. As such, the majority of members should again feel obliged to vote to keep policy on hold at next week's BoE MPC meeting.

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
Released On: 1/162/133/204/185/236/137/188/159/1910/1711/1412/19
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