19.08.202606:11:49UTC+00UK Producer Inflation at 4-Month Low of 3.1%

Factory gate prices for UK-manufactured goods rose 3.1% year-on-year in July 2026, easing from a 3.5% increase in June and coming in just below market expectations of 3.2%. This was the smallest annual gain in four months.

Eight of the ten product groups contributed positively to the annual rate, with the largest impact coming from coke and refined petroleum products, where prices jumped 30.1%, albeit down from 41.3% in June, reflecting elevated energy costs. Price growth also picked up slightly for other manufactured products (4.6% vs 4.5% in June), but slowed for basic metals, fabricated metal products, and machinery (5.0% vs 5.2%).

In contrast, motor vehicles and other transport equipment exerted the biggest downward pull on the annual rate, with prices falling 1.6%. Food products were another drag, with prices down 0.8%.

On a monthly basis, factory gate prices increased 0.2% in July, following a revised 0.1% decline in June and in line with market forecasts.