UK September output PPI drops by 0.3%

Producer price inflation in the United Kingdom seems to have eased in September as input and output prices have fallen respect the previous month.Prices charged by producers decreased 0.3% in September for the first time since December 2005. Year-on-year, prices surged 1.8%, the lowest gain since April 2004, according to data published by the National Statistics Office. August output prices have been revised to a 0.1% rise on the month and 2.0% up respect the same month last year.Data came as a surprise for the analysts who expected a 0.1% monthly increase and a 2.0 yearly rise. The reason for this figures, according to the stats office, is the declining prices of petroleum.According to this data, inflationary pressures are not as strong as it had been forecasted, although this does not seem to be reason enough for the Bank of England to approve another rate hike, to 5.0% before the end of the year.