mpc.theyserveforyou.com

mpc: 16 CPI inflation had been 1.3% in December. Goods price inflation had been picking up for some time, with increases across most components of the index, while services price inflation had fallen, largely because of lower prices for package holidays. There was some evidence of growing inflationary pressure in the supply pipeline. Twelve-month producer input price inflation had risen to 2.7% in the second half of last year, propelled by commodity prices, which had risen in sterling, not just US dollar, terms. This had been corroborated by the input price component of the manufacturing PMI. Although movements in commodity and other input prices did not have a close relationship with changes in the Consumer Prices Index, the rises were indicative of the general upward pressure on prices from the broad-based recovery in global demand. There was also some evidence that UK corporate services inflation had been rising during 2003.