UK CPI Inflation stalls in September, PPI rises

Supply chain pressures exerted by a combination of Brexit and the pandemic have increased producers' prices, with the measure (PPI) rising from 6% to 6.7% for September, showing that upward pressure is continuing to build. This comes as companies report an increase in price of inputs of 11.4% over the to end of September, rising from 11.2% the previous month. Whilst the PPI measure increased, the consumer price index (CPI) slowed from 3.2% year on year to 3.1%, though is thought to be attributable to last year`s `eat out to help out` scheme still being present in the data which contributes to a low base, offsetting rises in other prices such as energy, autos and most other costs of living. This is a continuation of trends widely expected by markets for the time being and there was little change in UK related assets, though government debt weakened marginally, whilst the currency held steady.