MNI DATA BRIEF: UK Pipeline Inflation Soars In May

UK pipeline inflation skyrocketed in May, with input PPI increasing at an annual rate of 10.7%, the fastest pace since September 2011, up from an upwardly revised 10.0% April, and boosted by a 109% increase in crude oil prices over the past 12 months. Excluding energy, core input prices jumped by 7.8% (up from 7.4% in April), the fastest pace since January of 2009.

Output PPI increased to 4.6%, the highest rate since January of 2012, from 4.0% in April, lifted by transport equipment, while core output PPI accelerated to 7.8%, the highest since January 2009, from 7.4% the previous month. With consumer prices rising above target more quickly than the Bank of England anticipated, rising above 2% for the first time in neatly 2 years, the acceleration in pipeline inflation could make for a spirited conversation at next week's MPC meeting.