Investing.com - Producer price inflation in the U.K. declined for the eighth consecutive month in January, underlining concerns over the threat of deflation, official data showed on Tuesday.
In a report, the U.K. Office for National Statistics said that PPI input fell by a seasonally adjusted 3.7% last month, worse than expectations for a 2.5% drop.
PPI input fell by 3.3% in December, whose figure was revised from a previously reported drop of 2.4%.
The report also showed that PPI output dipped by a seasonally adjusted 0.5% in January, disappointing expectations for a 0.3% decline, after falling 0.5% in December.
GBP/USD was trading at 1.5358 from around 1.5340 ahead of the release of the data, while EUR/GBP was at 0.7414 from 0.7422 earlier.
Meanwhile, European stock markets remained mixed. London’s FTSE 100 tacked on 0.1%, the EURO STOXX 50 shed 0.65%, France's CAC 40 dropped 0.55%, while Germany's DAX lost 0.7%.