Latest data released by ONS - 13 February 2019
- Prior +0.2%
- CPI +1.8% vs +1.9% y/y expected
- Prior +2.1%
- Core CPI +1.9% vs +1.9% y/y expected
- Prior +1.9%
Headline inflation declines more than expected to the lowest level since January 2017. ONS cites the decline was mainly due to cheaper gas, electricity and petrol and was partly offset by ferry tickets and air fares. In terms of the core reading, inflation held steady on the month at +1.9% y/y so that should provide some relief in the report here.
Cable fell a touch on the release from 1.2895 to a low of 1.2883 before recovering those losses now. The report here isn't a game changer as the core reading is still holding up well. You can view this as pretty much a non-event considering it will do little to affect the BOE's rate hike outlook, and that still hinges plenty on Brexit developments anyway.
Some other details on the day as producer price and retail price figures are released:
- PPI output 0.0% vs 0.0% m/m expected
- PPI output +2.1% vs +2.2% y/y expected
- PPI input -0.1% vs +0.2% m/m expected
- PPI input +2.9% vs +3.8% y/y expected
- RPI -0.9% vs -0.8% m/m expected
- RPI +2.5% vs +2.6% y/y expected
- HPI +2.5% vs +2.8% y/y prior; revised to +2.7%
