DailyFX Plus Login

fundamental alert

Article

UK Producer Price Index - Economic Data Preview
Monday, 08 December 2008 01:36:05 GMT  |  Ilya Spivak, Currency Analyst
Delicious
Facebook

The UK Producer Price Index report is set to fall for the fourth consecutive month in November, shedding -0.6% to bring the annualized growth rate to an 11-month low at 5.2%. This will mean that the pace of PPI growth slowed a staggering 47% in just four months having peaked with commodities in July. Falling production costs are expected to be passed on (at least in part) to consumers by way of a lower price for the final good, slowing consumer inflation and giving the Bank of England room to continue cutting interest rates. The BOE cut borrowing costs by a full percentage point last week and is expected to offer another 25-50 basis points in easing at the next monetary policy meeting on January 7, 2009.

Related Article: Pound Threatens Six Year Lows As UK Recession Paces Global Decline

More Articles

Feedback Form