The March PPI data proved stronger than the expectations that sterling was thrown from the highs reached earlier in Friday's European session. Rate of increase in purchase prices established at the level of 14,6% yoy, while sales prices as inflation accelerated to 5,4% (from 5,3%), against expectations, falling to 5,1%. These perfectly illustrate the price pressure with which the Bank of England must fight, but the prospect of weak growth and the persistence of high unemployment rates are in contrast to hawks.
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