The pound was higher against other currencies after the UK producer prices data soared in January, suggesting pipeline inflationary pressures are very much alive in the economy. Output prices rose a monthly 1.0 pct after a 0.4 pct increase in December, the highest monthly rise since January 1995 and well above analyst expectations for another 0.4 pct increase. Input prices rose by 2.6 pct in January from December, far above analyst expectations for a 1.3 pct rise. "Today's producer prices figures are likely to prompt the market to reconsider its assumption that rates will fall fairly rapidly from here," said Paul Dales at Capital Economics. The market expects another 100 basis points in rate cuts from the Bank of England this year, but the data suggests that may be too much, as inflation will limit the speed with which cuts may be delivered. "The ... data underline that the Monetary Policy Committee will have to let activity slow fairly sharply in order to prevent pipeline price pressures from finding their way into the high street," said Dales. An expected acceleration in CPI tomorrow -- to an annual 2.3 pct from 2.1 pct in December -- should drive home this message before the Bank of England publishes its Inflation Report on Wednesday. Elsewhere, the yen and Swiss franc remained stronger, helped by investors' risk aversion after some gloomy comments from the weekend's G7 meeting.