Westminster Bridge at sunset, London, UK

UK’s FTSE 100 index was on a standstill after strong UK Consumer Price Index. Euro STOXX 50 as well as French CAC 40 index remained unchanged. Germany’s DAX index joined the markets at a lower rate.

UK’s CPI Data

The FTSE 100 index rose after strong economic data from the UK. According to the Office of National Statistics, UK’s Consumer Price Index (CPI) came in at 2.1% YoY in May 2021. This was a stronger than expected figure as it surpassed the 1.8% forecast.

UK’s monthly CPI for May 2021 remained unchanged from April’s. However, it was a better-than-expected figure as it surpassed the 0.3% forecast. Transport was the biggest boost in the index with the highest gain of 0.72%. This was the largest contribution made by Transport since August 2018.

The rise in clothing, motor fuel, recreational goods, and meal prices resulted to the largest contributions in the CPI. However, a decline in food and non-alcoholic beverages, offset the gains in the mentioned sectors.

The prices of motor fuel went up by 0.36% following the rise in transport gains. Housing and household services slightly increased. Gas and electricity prices went up. Clothing and footwear prices rose by 0.13% YoY in May. This was the largest yearly gain since April 2018.

UK’s PPI Data

UK’s Producer Price Index (PPI) output for the month of May was up by 4.6% YoY. This was stronger than the estimated forecast for a 4.3% gain. Transport equipment provided the largest boost in the annual output rates.

Transport equipment contributed 1.8% in the index. Food products were up by 0.7%. Petroleum products were up by 3.3% in May. Petroleum products recorded the highest annual growth rate in output prices in May 2021. The products went up by 67% compared with May last year.

UK’s PPI for input prices jumped 0.7% higher to 10.7% YoY in May 2021. This was the highest yearly growth rate since September 2011. Metals and non-metallic minerals contributed 4.36% to input rates making it the largest contributor.

Home food materials contributed 0.41% to the input index. Crude oil had the highest annual growth of 109.2% in input growth.

FTSE 100 Performers

Some of the best performers in the FTSE 100 index were Mandi Plc, BT Group plc, Johnson Matthey plc and Ferguson plc. Mandi plc gained 1.57% in its stock earnings. BT Group gained 1.49%. Johnson Matthey and Ferguson each went up by 1.34% and 1.28% respectively.

Laggards in the index include Glencore plc, Anglo American and Associated British Foods plc. Glencore declined by 2.17% while Anglo American dropped by 1.97%. Associated British Foods followed suit with a 1.65% decline.

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