ONS data hints at inflationary pressures

Producer Price Index (PPI) input data, which measures the cost of raw materials to manufacturing, and PPI output data, which tracks changes in prices of UK produced goods sold by manufacturers, both reported increases. PPI readings are thought to be a leading indicator of consumer inflation in deciding monetary policy as higher producer costs are likely to be passed on to end buyers. Today's PPI input figures suggest a 0.1% increase in the cost of materials in November, disappointing expectations of a 0.2% fall. PPI output figures also rose 0.5% between November and December, mainl...