UK: headline inflation back to 2% y/y
UK: CPI (Apr.): 0.6% m/m vs 0.7% expected (prior: 0.2%)
Inflation has increased, but slightly less than feared; the rebound was driven by housing, transport-energy and communication prices.
Headline inflation was up by 2.1% y/y after 1.9% y/y the prior month, while core inflation stayed stable at 1.8% y/y.
UK: PPI Input prices (Apr.): 1.1% m/m vs 1.3% expected (prior: -0.8% revised from -0.2%)
Commodity and material prices have driven inflation up; headline prices were up by 3.8% y/y after 3.2% y/y the prior month.
UK: PPI Output prices (Apr.): 0.3% m/m as expected (prior: 0.1% revised from 0.3%)
Oil prices were up by 1.3% m/m; yearly trend in prices has slightly moderated from 2.2% y/y the prior month to 2.1% y/y.
Inflation pressures remain in place, but are not sufficient to justify any move from the BoE before recovering more visibility from the Brexit issue.