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.
Trade Desk Thoughts: Factory prices in the U.K. increased for the first time in the last six months. The input prices, or the price at which producers and manufacturers buy materials and fuel, rose in January by 1.5%, more than expected. Output price, or the prices at which manufacturers sell, gained 0.1%.
On an annualized basis, input prices are up 2.3%, even though only a few months earlier were higher by more than 30%. The 1.5% rise in input prices is the largest seen in the last eight months, being pulled higher by a rise in the price of crude oil
Forex Technical Reaction: The pound fell 30 pips after the news report. Previously, the pair bounced off TheLFB R1 (1.4775), and fell nearly 90 pips lower, close to the Asian opening price.