UK Producer Inflation Matches Forecasts in May
2026-06-17 06:06
By
Chusnul Chotimah
1 min. read
Factory gate prices for UK-manufactured goods advanced 4.0% year-on-year in May 2026, in line with market expectations but slightly easing from an upwardly revised 4.1% rise in April, which was the highest reading since May 2023.
Almost all 10 product groups made upward contributions to the annual rate, led by a surge in prices of coke and refined petroleum products (55.6% vs 51.1% in April) amid higher energy costs.
Inflation also accelerated for other outputs from manufacturing (4.3% vs 3.1% in April) and basic metals, fabricated metal products and machinery (4.2% vs 4.1%).
Meanwhile, motor vehicles and other transport equipment provided the largest downward contribution, with prices falling 1.7% (vs 2.2% in April).
The decline was due to supply chain issues and other market factors.
Monthly, factory gate prices rose 0.5%, slowing from an upwardly revised 1.5% increase in April, matching market forecasts and marking the softest increase since February, when producer prices fell.