–Removing Recyclables To Cut At Least 0.5pp From Output Prices In Oct
–Sep Producer Output Prices +0.3% m/m; +4.4% y/y
–Sep Core Producer Output prices +0.4% m/m; +4.6% y/y
–Sep Producer input Prices +0.7% m/m; +9.5% y/y

LONDON (MNI) – Output price inflation eased for the fifth
consecutive month in September to its lowest level for seven months,
although was still stronger than the median forecast, according to
figures released by National Statistics Friday.

Output prices rose 0.3% on the month in September and were 4.4%
above levels a year earlier. Analysts has expected to see an increase
of 0.1% on the month and 4.3% on the year.

Output price inflation has now eased for five consecutive months
and stands at its lowest level since February.

Moreover, a decision to remove the recyclables category from
producer output prices from October and in all previous months is
likely to cut annual output price inflation by at least 0.5
percentage point and possibly as much as 1.1 percentage point, changing
the picture of inflation over recent years.

National Statistics said that recyclables were being removed
from the index as this was now classified as a service and not
included in the producer prices release.

Input prices posted a 0.7% rise on the month in September
and were up 9.5% on the year, above the median forecast of 0.3% on the
month and 8.6% on the year.

The main driver was a 3.4% increase in imported metals and
increases in the price of imported parts and equipment and
chemicals.

–London newsroom 4420 7862 7492 email: drobinson@marketnews.com

[TOPICS: MABDA$,M$B$$$,MT$$$$,MABDS$]