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CROSS ASSET

Commodity-Tied Dollar Bloc Leads

JGBS

Cheaper On Wider Impetus

AUSSIE BONDS

YM Off Lows, Trouble Staying Offered In Wake Of GDP

FED

VIEW: BNP Paribas: Faster Tapering

US EURODLR FUTURES

Some Light Selling Seen

MNI BRIEF: UK Sep CPI Eases, Pipeline Inflation At Decade High

MNI (London)
(MNI) London

UK factory gate inflation soars to highest level since 2011

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Consumer price inflation fell modestly to an annual rate of 3.1% in September, from 3.2% in August, with prices in the restaurant and hotel sector preventing inflation from rising last month. Prices paid in the catering sector shaved 0.38 percentage points from the change in CPI, reflecting the one-off effect of the Eat Out to Help Out scheme, which reduced levies on food and drink in August 2020.

However, inflation rose in eight of the 12 major categories, suggestion wider-ranging inflation. Core CPI moderated slightly to an annual rate of 2.9% from 3.0% in August. Inflation fell slightly short of analysts' forecasts of 3.2%, presenting a conundrum for the Bank of England. Governor Andrew Bailey declined to push back on market expectations of a near-term rise in interest rates in a speech over the weekend.

Pipeline pressures continued to accelerate. Output PPI jumped to an annual rate of 6.7% last month, from 6.0% in August, the quickest pace since November of 2011. Input PPI rose to 11.4% from 11.2% in August.

Source: ONS