June PPI Eases, Raises Questions About BoE..>

UK DATA: June PPI Eases, Raises Questions About BoE Guidance

-UK June Input PPI -0.3% y/y vs +1.4% in May

-UK June Output PPI +1.6% y/y vs +1.9% in May

-UK June Core Output PPI +1.7% y/y vs +2.0% in May

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Pipeline inflation eased markedly in June, dampened largely by oil 

prices. Input PPI fell for the first time since June 2016, dragged lower 

11.6% annual plunge in crude oil prices, which shaved 2.3 percentage 

points from the change in PPI. Ouput prices rose at their slowest pace 

since September of 2016, courtesy of a 3.6% annual fall in diesel and 

gas oil prices in the year to June. However, core output PPI also 

declined to 1.7% to its lowest level since September 2016. The decline 

in intermediate inflation raises further questions about Bank of England 

suggestions that interest rates could rise this year.