CPI Outpaces Both Expectations, Bank Target.>

UK DATA: CPI Outpaces Both Expectations, Bank Target in July

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JUL CPI +0.0% M/M, +2.1% Y/Y, CORE CPI +0.1% M/M, +1.9% Y/Y 

JUL RPI 0.0% M/M; +2.8% Y/Y VS +2.9% Y/Y IN JUN

JUL OUTPUT PPI +0.3% M/M; +1.8% Y/Y VS +1.6% JUN

JUL INPUT PPI +0.9% M/M; +1.3% Y/Y VS 0.3%r JUN

JUN HOUSE PRICES +0.9% Y/Y VS +0.9%r MAY; LONDON -2.7% Y/Y; v -3.1%r MAY

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CPI was unchanged m/m in July, but rose 2.1% y/y, above the BOE's 

2% target and outpacing both MNI and Bbg expectations of a 1.9% rise. On 

top of this week's strong wages data, the inflation outcome will make 

uneasy reading for the Bank, which will see obvious signs of upside 

pressure, despite a sharply slowing economy. PPI input prices were 

higher in July, but the ONS couldn't state how or whether weaker 

sterling impacted the data, although they noted the high percentage of 

imported goods in the manufacturing chain.