Factory gate prices of goods produced by the UK manufacturers rose 3.3 percent year-on-year in October 2018, up from a 3.1 percent increase in September and above market consensus of a 3.1 percent gain. Prices advanced faster mainly for petroleum products (15 percent vs 13.5 percent in September), amid higher prices of diesel and gas oil (15.8 percent vs 12.9 percent); clothing, textile & leather (1.7 percent vs 0.9 percent); chemicals & pharmaceutical products (6.8 percent vs 6.7 percent); food products (1.8 percent vs 1.7 percent) and other manufactured goods (2.4 percent vs 2.2 percent). Also, prices for materials and fuels paid by the UK manufacturers for processing (input prices) rose at a slower 10 percent, compared to a 10.5 percent gain in September. On a monthly basis, output prices went up 0.3 percent, after a 0.4 percent rise in the prior month, but exceeding market expectations of a 0.2 percent increase. Producer Prices Change in the United Kingdom averaged 5.07 percent from 1964 until 2018, 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 2.20 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 2.30 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.