The BoE can have a slight breath intake today with the easing price pressures at factory gates in May as headline inflation remains at 4.0% and growth is slowing which leaves the BoE between a rock and a hard place.

May input PPI prices dropped 2.0% from 2.8% rise revised from 2.6% and much more than the expected drop of 1.0%. On the year input prices eased the gains to 15.7% from a revised 17.9% from 17.6% and below the expected 16.2%.

Output prices on the other hand eased as well with 0.2% rise on the month following 1.0% rise in April from 0.8% reported and below 0.3% expected. On the year the rise was in line with expectations at 5.3% from a revised 5.5%.

Core output prices also eased to 0.2% rise from a revised 0.8% rise from 0.6% and below 0.3% expected. On the year prices rose 3.4% from a revised 3.6%.