"The April producer price data … do little overall to reduce the uncertainty as to whether or not the Bank of England will eventually do more Quantitative Easing"
- Howard Archer, an economist at HIS Global Insight
U.K. producer prices rose by more than economists forecast in April, led by higher tobacco, alcohol and electrical equipment costs. Prices increased 0.7 per cent from March, said the Office for National Statistics on Friday.
"The April producer price data are a mixed bag ... and do little overall to reduce the uncertainty as to whether or not the Bank of England will eventually do more Quantitative Easing after the Monetary Policy Committee brought it to at least a temporary halt at their May meeting," said Howard Archer, an economist at HIS Global Insight.
"Much will clearly depend on whether or not the economy shows signs of picking up as well as future inflationary developments."
"And the dismal and perplexing construction output data for the first quarter adds to the MPC's dilemma as it currently faces weak economic activity and sticky inflation."
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