–Adds Detail To Version Transmitted At 0845 GMT

LONDON (MNI) – UK input prices plunged on the month in April,
largely due to the fall in crude oil prices, taking the rate of yearly
input price inflation below that of output price inflation for the first
time since October 2009.

Input prices fell 1.5% on the month in April to stand up 1.2% on
the year, having been up 5.6% on the year in March. This vertiginous
fall in the yearly rate of input price inflation took the rate below the
3.3% yearly rise in output prices in April.

The 1.2% yearly rise in input prices was also the lowest level
since October 2009. National Statistics said the 1.5% monthly fall was
mainly due to the declines in crude oil prices, imported metals and
other imported parts and equipment.

The detailed data showed that by far and away the largest downward
contribution to the 1.5% monthly fall came from crude oil. Crude oil
knocked 1.44 percentage points off the 1 month percentage change in
crude oil prices.

The next biggest downward impact came from imported metals, which
knocked 0.14 percentage point off the monthly rate and then imported
parts and equipment, which knocked 0.13 percentage points off the rate.

For the 1.2% yearly rate of input price inflation, the biggest
downward impact came from imported metals, which took away 0.58
percentage points. Crude oil’s impact on the yearly rate was marginal,
subtracting just 0.05 percentage points.

Output prices rose 0.7% and were up 3.3% on the year, down from
3.7% on the year in March, with the yearly rate the lowest since
December 2009.

Core output prices were up 2.3% on the year in April compared with
up 2.5% in March. Core output price inflation was at its lowest level
since February 2010.

The fall in input prices was larger than analysts had anticipated
but the decline in output prices was less.

Analysts had expected the data to show input prices falling, with
their median forecast for a 0.8% drop on the month following March’s
revised 1.7% monthly rise. The monthly fall was the first since
December.

Back in July 2011 yearly input price inflation stood at 18.5% and
it was still above 18% in September last year. Since then it has
descended rapidly, reaching 8.9% in December and then continuing on
down.

–London bureau: 0044 20 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,MABDS$]