21.10.202606:07:14UTC+00UK Producer Inflation Hits Near 3-1/2-Year High

Factory gate prices for UK-manufactured goods rose 4.6% year-on-year in September 2026, up from an upwardly revised 3.8% increase in August and above market expectations of 4.3%. This was the fastest annual rise since April 2023.

Eight of the ten product groups contributed positively to the annual rate. The largest upward impact came from coke and refined petroleum products, where prices surged 63.3% (vs. 50.8% in August), reflecting higher energy costs. Prices for metals, fabricated metal products, and machinery climbed 6.1%, unchanged from the revised August reading. Prices of other manufactured products increased 3.6%, also in line with the previous month.

In contrast, motor vehicles and other transport equipment exerted the largest downward influence, with prices declining 1.2%. Food products also weighed on the index, with prices falling 0.6%.

On a monthly basis, factory gate prices rose 0.8% in September, following a 0.7% increase in August and topping forecasts of a 0.7% gain. This marked the strongest monthly rise in five months.