22.04.202606:07:24UTC+00UK Producer Inflation Picks Up to 2.6%

Factory gate prices for UK-manufactured goods rose 2.6% year-on-year in March 2026, up from 1.8% in February and reaching their highest rate in three months. Of the ten product groups, nine made positive contributions to the annual rate, led by a sharp turnaround in coke and refined petroleum products, where prices jumped 14.6% after a 7.9% decline in February, reflecting surging global energy costs.

Inflation also strengthened for motor vehicles and other transport equipment (2.1% vs 1.8%), while price growth for other manufactured products eased slightly to 2.7% from 2.8%, but remained a major driver of overall upward pressure. In contrast, price inflation slowed 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 increased 0.9% in March, rebounding from a 0.5% decline in February. Although this fell just short of the expected 1% rise, it was still the steepest monthly increase since October 2022.