U.K. Output PPI rose 0.1% m/m and 3.1% y/y, slightly above our survey median for and 3.0% and down from 3.5% y/y in January. Meanwhile, core output prices decelerated to 3.7% y/y from 4.0% (revised from 4.1%), against a Reuters median for 3.6%. Input prices rose 0.6% m/m but the y/y rate decelerated to 0.5% from 1.5% (revised down from 2.3%), below our survey median 1.1% y/y reading. Overall, some inflation stickiness hence remains, with import prices providing some upward pressure. Data also shows that producers are not slashing prices sharply to accommodate weakening demand, most likely as profit margins are already squeezed.
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