Factory gate prices of goods produced by the UK manufacturers increased 1.6% from a year earlier in August of 2019, easing from an upwardly revised 1.9% rise in the previous month and below market expectations of a 1.7% gain. Cost slowed for wood & products of wood and cork (2% vs 2.7% in July); computer, electronic & optical products (2.3% vs 3.4%); electrical equipment (2.5% vs 2.6%); furniture (0.2% vs 0.3%) and food (1.5% vs 2.1%). Also, prices fell further for coke & refined petroleum products (-1.8% vs -0.4%); chemicals (-0.8% vs -0.4%) and basic pharmaceutical products (-0.4% vs -0.1%). Prices for materials and fuels paid by the UK manufacturers for processing (input prices) declined 0.8%, after a downwardly revised 0.9% increase in July and compared with market consensus of a 0.5% decrease. On a monthly basis, output prices edged down 0.1%, after increasing 0.3% in the previous month and against market estimates of a 0.2% gain. Producer Prices Change in the United Kingdom averaged 5.03 percent from 1964 until 2019, reaching an all time high of 27.80 percent in January of 1975 and a record low of -1.90 percent in August of 2015.
Producer Prices Change in the United Kingdom is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in the United Kingdom to stand at 2.00 in 12 months time. In the long-term, the United Kingdom Producer Prices Change is projected to trend around 2.50 percent in 2020, according to our econometric models.