Sterling Is Weaker Despite Stronger Than Expected Inflation Figures (FXB)
February 05, 2010 8:50 AM
The pound continues to be weak despite higher than expected inflation figures released today.
The Office for National Statistics reported that the output price index for January rose by 0.4 per cent, to 3.8 percent year on year. When food, beverages, tobacco and petroleum products were stripped out, the core output prices figure, January output prices rose by a more modest 0.3 percent and by 2.5 percent year on year.
Meanwhile, the input price index rose much more sharply than expected by 2.0 percent in January, with the ONS attributing the rise mainly to higher crude oil prices and to a lesser extent, fuel and the costs of imported parts and equipment. Economists had an average forecast rise of a much more modest 0.5 percent. Year on year, input prices rose 8.4 percent.
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