Weak PPI Could Fuel Further Fall in.........>

UK DATA: Weak PPI Could Fuel Further Fall in Consumer Inflation

-UK Oct Input PPI -5.1% y/y vs -3.0% in Sept

-UK Oct Output PPI +0.8% y/y vs +1.2% in Sept

-UK Oct Core Output PPI +1.3% y/y vs +1.7% in Sept

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Pipeline inflation weakened further in October, courtesy of a fall in 

oil and petroleum prices, suggesting consumer inflation could remain 

quiescient in months to come. Crude oil prices slumped by 5.3% between 

September and October, subtracting 0.91pp from annual input PPI, 

fuelling the biggest fall since April of 2016. The price of petroleum 

products declined by 5.7% in the month, contributing to the lowest level 

of output PPI since August 2016. But intermediate inflation excluding 

the effect of oil was also subdued, with core output PPI slipping to its 

lowest level since July of 2016.