U.K. PRODUCER PRICES SEEN MOVED BY TECHNICALITIES
  U.K. Producer price data for March were
  roughly as expected after taking into account technical factors
  which affected the year-on-year outcome, economic analysts
  said.
      The figures showed a 0.3 pct provisional, non-seasonally
  adjusted rise in output prices in March, unchanged from
  February and close to the average for the last six months.
      The year-on-year rise was put at 3.7 pct, down from 4.2 pct
  in February.
      But Chris Tinker, economist at brokerage house Phillips and
  Drew, said the drop in the year-on-year rate mainly reflected a
  rise in excise duties which affected the index in March last
  year.
      He cautioned that it was dangerous to read too much into
  the monthly figure, adding that a rise of only 0.2 pct in April
  would take the year-on-year rise back above 4.2 pct.
      Analysts also noted that a drop in manufacturers' input
  prices was almost entirely due to anticipated seasonal factors
  such as a fall in industrial electricity costs.
      Duncan Squire of Lloyds Merchant Bank said the figures were
  slightly disappointing in that the strengthening of sterling
  had not yet reduced input prices as much as expected.
      Both he and Tinker said this factor should help keep input
  costs down over the next few months, although Tinker added that
  last year's fall in oil prices is now about to drop out of the
  year-on-year comparisons and is likely to lead to a return to
  rises in the index rather than falls.
  

