UK PPI data report 14 Feb

  • +0.2% prev revised up from +0.1%
  • yy NSA +3.5% vs 3.2% exp vs 2.8% prev revised up from 2.7%
  • core output mm NSA +0.5% vs +0.3% exp vs 0.0% prev
  • yy NSA 2.4% vs 2.2% exp vs 2.1% prev
  • PPI input mm NSA +1.7% vs 1.0% exp vs 2.75 prev
  • yy NSA 20.5% vs 18.3% exp vs 17.0% prev

Stronger readings but GBP lower on softer than expected CPI report. These firmer readings will filter through in due course though.

GBPUSD testing bids/demand at 1.2480. Bottom of current range. Look for acceleration if it breaks but caution advised. If you joined me selling into 1.2550 earlier then take some money of the table if we hold here.

EURGBP 0.8507. Initial offers/res 0.8520 then larger at top of recent range around 0.8535

Say the ONS:

  • Both the annual and monthly rate of producer price inflation increased in January 2017.

  • Factory gate prices (output prices) rose 3.5% on the year to January 2017, which is the seventh consecutive period of annual price increases and the highest they have been since December 2011.

  • Prices for materials and fuels paid by UK manufacturers for processing (input prices) rose 20.5% on the year, which is the fastest rate of annual growth since September 2008.

  • Prices of imported materials and fuels increased 20.2% on the year, largely a result of sterling depreciation and a recovery in global crude oil prices.

Full ONS report here