UK March CPI +0.7% vs +0.8% y/y expected

Latest data released by ONS - 21 April 2021

• Prior +0.4%
• Core CPI +1.1% vs +1.1% y/y expected
• Prior +0.9%

Slight delay in the release by the source. A modest jump in consumer inflation but much like most countries, the higher reading in March owes to base effect adjustments as well so that needs to be taken into account when viewing the numbers.

Expect more of the same in the next few months, more so especially when the economy gradually reopens further. For now, the BOE should brush any of these developments aside and also at the early stages of 2H 2021 surely.

Some other details on the day as producer price and retail price figures are released:

• PPI output +0.5% vs +0.3% m/m expected
• PPI output +1.9% vs +1.7% y/y expected
• PPI input +1.3% vs +0.5% m/m expected
• PPI input +5.9% vs +4.3% y/y expected

• RPI +0.3% vs +0.4% m/m expected
• RPI +1.5% vs +1.6% y/y expected