UK DATA: Apr producer output prices +0.8% m/m; +5.3% y/y
–Apr core producer output prices +0.6% m/m; +3.4% y/y
–Apr producer input prices +2.6% m/m; +17.6% y/y
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Output prices rose 0.8% m/m in April and 5.3% y/y, a little above the
median for +0.7%/+5.1%. This was booosted by duty rises as well as
increases in petrol and clothing and footwear. Core prices rose 0.6% m/m
and by 3.4% y/y the highest annual rate since Sep 2010 and above the
median for 0.4%/3.1%, with the rise in clothing prices feeding through
strongly. Input prices were way above the median forecast, rising 2.6%
m/m vs the 1.6% median pushing the annual rate up to 17.6% the highest
since Sep 2008. This was mainly due to the rise in crude oil prices as
well as imported chemicals and other parts and equipment. These figures
suggest continued upward pressure on CPI, although the recent fall in
the oil price suggests the oil effect could be diminished.