UK PPI Core Output (Aug MM) 0.3% (Prev. 0.5%)

UK PPI has carried less weight with the MPC than services CPI and wage growth, so single releases of this kind have historically moved gilts and sterling modestly and mainly at the front end, with any repricing tending to fade unless the direction is corroborated by the consumer-side data. The core measure matters more than the headline here because it strips out the food and energy components that have driven much of the volatility in this series through prior commodity episodes. The point worth noting is the deceleration itself rather than the level: a run of softer monthly prints has, in past cycles, been how easing in pipeline pressure first showed up before it reached the CPI basket. The follow-ons are the next CPI and labour releases and any MPC commentary referencing pipeline costs, which is where this print either gets traction or gets discarded.