2018 Economic Calendar
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United Kingdom : PPI  
Released On 11/14/2018 4:30:00 AM For Oct, 2018
PriorPrior RevisedConsensusActual
Output-M/M0.4 %0.2 %0.3 %
Output-Y/Y3.1 %3.1 %3.3 %
Input-M/M1.3 %1.4 %0.6 %0.8 %
Input-Y/Y10.3 %10.5 %9.6 %10.0 %

Highlights
Manufacturers' input costs and output prices rose again in October and by more than market expectations.

Factory gate prices were up 0.3 percent on the month which, following an unrevised 0.4 percent gain in September, lifted the annual inflation rate from 3.1 percent to 3.3 percent, matching the 2018 high seen in June. Amongst the major categories, the largest monthly increase was again in petroleum products (2.0 percent) which was well ahead of clothing, textiles and leather (0.9 percent). The only fall was in computer, electrical and optical products (0.4 percent). Core prices matched the 0.3 percent monthly headline gain which put the yearly underlying rate at 2.4 percent, in line with the September print.

Meantime, raw material and fuel costs climbed a further 0.8 percent versus September to stand 10.0 percent above their level a year ago. Inevitably, the main upward pressure stemmed from crude oil where charges were up fully 5.8 percent on the month. The only other gain was in imported food materials (just 0.2 percent) as all the other categories recorded declines.

Rising input costs continue eat away at corporate profitability as competitive markets effectively keep a lid of producers' ability to raise charges. As such, pipeline pressures from manufacturing on consumer prices still pose only a limited threat to the inflation target.

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
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