Energy Prices Lift PPI; Core Pipeline Muted.>

UK DATA: Energy Prices Lift PPI; Core Pipeline Inflation Muted

-UK Jan Input PPI +2.1% y/y vs +0.9% in Dec

-UK Jan Output PPI +1.1% y/y vs +0.9% in Dec

-UK Jan Core Output PPI +0.7% y/y vs +0.9% in Dec

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Rising energy prices lifted pipeline inflation last month, following an 

11.3% surge in the cost of crude in in the year to January. Input PPI 

rose to its highest level since April, with crude prices accounting for 

1.8 percentage points of the gain. Petroleum products added 0.37 

percentage points to output PPI, but core output PPI fell to its lowest 

leve since May of 2016. The sterling effective exchange rate fell by 

0.4% between December and January, the first decline in four months, but 

rose by 3.3% on an annual basis, the third consecutive gain.  Despite 

the uptick in CPI in January, intermediate inflation suggests consumer 

prices will moderate in the coming months.