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U.K. PPI Input Actual 0.4%, Expected 0.8%, Previous -1.7% (Revised from -1.0%)
U.K. PPI Output Actual 0.4%, Expected 0.4%, Previous 0.7% (Revised from 0.6%)
Release Explanation: Measures the rate of inflation of manufacturers when purchasing Goods and Services; the rate of Inflation at the factory Gate. “Usually, an increase in the price of raw Goods and services gets passed on to the consumer, therefore this is the first stage on Retail Inflation” TheLFB-Forex.com Trade Team added.
TheLFB-Forex.com Trade Desk Thoughts: U.K. input factory prices rose in May, even though last month input prices tumbled at a strong pace. Input prices, or the price at which producers and manufacturers buy materials and fuel, rose in May by 0.4%, less than expected. The output price, or the price at which manufacturers sell their goods, gained 0.4%, a fifth consecutive monthly gain. Input prices are down a huge 9.4% in May from one year ago, the most since 2001, while output prices fell to -0.3% over the same period, the most since 2002.
“The release shows that U.K. factories continue to put pressure on consumers. Output prices were again pulled higher by the pound’s decline together with the rise in gas prices. Excluding the volatile items, output prices rose 1.2% from one year ago” TheLFB-Forex.com Trade Team said.
Forex Technical Reaction: The release failed to spark any reaction in the currency market. During the European session, the pound traded in a 40 pip range, as the currency market prepares for the NFP release.
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