2026.07.2206:07:54UTC+00UK Producer Inflation at 3-Month Low of 3.5%

Factory gate prices for UK-manufactured goods rose 3.5% year-on-year in June 2026, easing from a downwardly revised 3.7% increase in May and marking the slowest pace of growth in three months. Eight of the ten product groups contributed positively to the annual rate, led by a sharp rise in prices for coke and refined petroleum products (up 43.0% vs 53.1% in May), reflecting higher energy costs. Inflation also picked up for other manufactured products (4.2% vs 3.9% in May) and for basic metals, fabricated metal products, and machinery (4.9% vs 4.2%).

In contrast, motor vehicles and other transport equipment made the largest negative contribution, with prices falling 1.9%. Food products followed, with prices down 0.7%. On a monthly basis, factory gate prices were flat in June, after a downwardly revised 0.3% rise in May, undershooting market expectations for a 0.4% increase.