UK Producer Inflation Beats Forecasts

Factory gate prices for UK-manufactured goods increased 4.0% year-on-year in April 2026, more than market expectations of a 2.8% rise and accelerating from an upwardly revised 3.0% growth in March. This marked the highest reading since May 2023, as all 10 product groups made upward contributions to the annual rate, led by a surge in prices of coke and refined petroleum products (52.6% vs 23.7% in March) amid higher energy costs. Inflation also picked up for other manufacturing outputs (2.7% vs 2.6%) while remained steady for basic metals, fabricated metal products, and machinery (at 3.7%). Meanwhile, price growth slowed mainly for food products (0.5% vs 1.7%) and motor vehicles and other transport equipment (2.1% vs 2.4%). On a monthly basis, factory gate prices rose 1.4%, matching the pace recorded in March and topping market forecasts of a 1.0% increase.

Factory gate prices for UK-manufactured goods climbed 2.6% year-on-year in March 2026, accelerating from 1.8% in February and marking the highest reading in three months. Of the 10 categories, nine contributed positively to the annual rate, led by a strong rebound in coke and refined petroleum products (14.6% vs -7.9% in February), amid surging global energy costs. Inflation also picked up for motor vehicles and other transport equipment (2.1% vs 1.8%), while price growth for other manufacturing outputs eased slightly to 2.7% (vs 2.8%), though it remained a key contributor to upward pressures. Meanwhile, inflation eased for food products (1.6% vs 2.4%), chemicals and pharmaceutical preparations (0.1% vs 0.9%), and basic metals (3.5% vs 3.7%). On a monthly basis, factory gate prices rose 0.9%, rebounding from a 0.5% fall in February, below expectations of a 1% gain but marking the sharpest rise since October 2022.

Factory gate prices for UK-manufactured goods rose 1.7% year-on-year in February 2026, easing from a 2.5% increase in January and defying expectations of a slight pickup to 2.6%. This marked the softest reading since April last year, with the main downward pressure coming from coke and refined petroleum products, where prices fell 8.6%, deepening from a 7.7% decline and providing the largest drag on the overall rate. Producer inflation also moderated for motor vehicles and transport equipment, with annual price growth slowing sharply to 1.8% from 5.5%. Meanwhile, producer inflation eased for food products (2.4% vs 3.2%) and other manufacturing outputs (2.7% vs 2.9%), though both remained key upward contributors, with food prices partly driven by higher beef costs amid supply and demand pressures. On a monthly basis, producer output prices fell 0.5%, after being unchanged in January and defying forecasts of a 0.2% rise.