Pipeline Inflation Muted, Dampened by.......>

UK DATA: Pipeline Inflation Muted, Dampened by Stronger Sterling

-UK Nov Input PPI -2.7% y/y vs -5.0% in Oct

-UK Nov Output PPI +0.5% y/y vs +0.8% in Oct

-UK Nov Core Output PPI +1.1% y/y vs +1.3% in Oct

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Pipeline inflation weakened further in November, removing another 

barrier to a rate cut in early 2020. Annual output PPI rose by the 

slowest pace since July of 2016, while core output PPI increased by the 

smallest margin since June of the same year. The decline in input PPI 

was checked by a less dramatic drop in crude oil prices than in the same 

period of 2018. The sterling effective exchange rate increased by 1.7% 

between October and November, the fourth consecutive increase, and by 

1.7% over October of 2018, the first annual rise since April.