UK PPI Input (Jul MM) -1.7% vs. Exp. 0% (Prev. -1.9%)
Newsquawk ·
Producer input price readings of this kind sit several steps removed from consumer inflation, and the pass-through from factory-gate costs to CPI has historically been partial and slow, which limits the weight the Bank of England places on any single monthly print. The distinction worth drawing is between goods-driven pipeline disinflation, which commodity and import costs tend to generate, and the services and wage inflation that has dominated UK rate deliberations; a negative input print speaks to the former and leaves the latter untouched. A second consecutive negative monthly reading extends a run rather than establishing one, and in past episodes sustained pipeline softness has fed into output prices and eventually headline CPI with a lag measured in quarters. The follow-ons are the output PPI alongside it, which captures what producers are passing on, and whether the trend shows up in the goods component of the next CPI release. Sterling and gilt reaction to PPI alone has typically been muted and short-lived relative to the reaction CPI and labour data command.
DYAX Investor Sentiment
Bullish (Long) 44% · Bearish (Short) 56%
514 participants
Related News
- 슬로바키아 7월 인플레이션율 전년 대비 3.2% 상승
- ECB's Lagarde on the global economic outlook
- ECB President Lagarde posts remarks about the European economy during a discussion on the global economic outlook
- UKMTO has received a report of an incident 40NM southeast of Al Mukha, Yemen; The cargo vessel was unmanned at the time of the incident, however the damage has resulted in a complete constructive loss.
- ADNOC reportedly aims to trim the amount of crude sold to Asian customers in August and September, Bloomberg reports citing sources; piece suggests the move has helped Murban oil prices to rebound
- ECB's Rehn says the wage growth and outlook remain moderate, there are no clear signs of second‑round effects
