The headline rate of inflation for goods leaving the factory gate (output prices) rose 3.3% on the year to December 2017, up from 3.1% in November 2017. Prices for materials and fuels (input prices) rose 4.9% on the year to December 2017, down from 7.3% in November 2017. All industries provided upward contributions to output annual inflation; the largest contribution was made by food products. Prices of imported materials and fuels increased 4.5% on the year to December 2017, down from 6.7% in November 2017.
In the US session Empire State Manufacturing Index data was published. Business activity continued to grow at a solid clip in New York State, according to firms responding to the January 2018 Empire State Manufacturing Survey. The headline general business conditions index, at 17.7, was little changed from last month’s level. The new orders index and the shipments index both showed ongoing growth, although at a slower pace than in December.
There will be no major data release from the UK tomorrow. In the US session Industrial Production figures will be published. Analysts predict increase by 0.4%.
Figures to watch:
Industrial Production (Wednesday 15:15)
