2018 Economic Calendar
2019 Econoday Investor's Journal Buy Now
POWERED BY  econoday logo
U.S. & Intl Recaps   |   Event Definitions   |   Today's Calendar   |   

United Kingdom : PPI  
Released On 10/17/2018 4:30:00 AM For Sep, 2018
PriorPrior RevisedConsensusActual
Output-M/M0.2 %0.2 %0.4 %
Output-Y/Y2.9 %2.9 %3.1 %
Input-M/M0.5 %1.2 %0.9 %1.3 %
Input-Y/Y8.7 %9.4 %9.2 %10.3 %

Highlights
Producer prices were stronger than expected in September.

Factory gate charges were up 0.4 percent on the month, their steepest increase since May and firm enough to lift the annual inflation rate by 0.2 percentage points to 3.1 percent. This was the first pick-up in the yearly rate since June and fully reversed August's decline. On the month, the main boost came from petroleum products where prices jumped 1.6 percent (some 13.5 percent on the year) and food (monthly 0.7 percent). Metal, machinery and equipment (0.4 percent) also provide a boost but elsewhere changes were typically only small if not negative. As a result, the core index was only 0.1 percent higher than in August, although this still lifted the yearly underlying rate from 2.2 percent to 2.4 percent.

At the same time, raw material and fuel costs climbed a monthly 1.3 percent, their sharpest gain since May. Annual cost inflation jumped from an upwardly revised 9.4 percent to 10.3 percent to return to its level in June/July. Hefty monthly increases in crude oil (3.3 percent) alongside fuel (5.3 percent) and home food materials (2.3 percent) did most of the damage. However, there were partially offsetting falls in five of the nine subsectors.

The increase in pipeline price pressures shown in today's report will not be wasted on the BoE. However, as today's September CPI data show, for now at least consumer price inflation remains broadly under control.

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


powered by  [Econoday]