UK consumer prices rose 0.1% in October - BBH

Research Team at BBH, notes that the October consumer prices in the UK rose 0.1% while the market had looked for a 0.3% increase. 

Key Quotes

“This saw the year-over-year rate slip to 0.9% from 1.0%.The core retreated to 1.2% from 1.5%, matching the low of the year, last seen in May.Several MPC members and BOE Governor Carney will be speaking before Parliament today.Although the ONS says it, there is little sign that (outside of fuel) the weaker pound is feeding through to general prices.However, the rise in producer input prices (4.6%, a record jump) and output prices (2.1% year-over-year is the largest increase in almost five years) illustrates why some believe there is pressure building.”

“Sterling has outperformed recently as EMU is seen as the next place that populism has taken hold.However, sterling is underperforming today, adding to the consolidative pall.Sterling peaked before the weekend near $1.2675. It slipped briefly below $1.2400 today.A break of $1.2350, last week's low would likely signal that the consolidation is morphing into a correction.”