2026.09.1606:06:48UTC+00UK Producer Inflation Hits 3-Month High

Factory gate prices for UK-manufactured goods rose 3.7% year-on-year in August 2026, up from an upwardly revised 3.3% in July, which had been the slowest increase in four months. The August reading exceeded market expectations of 3.3%, marking the fastest pace of growth in three months.

Eight of the ten product groups contributed positively to the annual rate, led by a sharp increase in prices for coke and refined petroleum products (49.1% vs 35.4% in July), reflecting higher energy costs. Price growth also accelerated for basic metals, fabricated metal products, and machinery (5.6% vs 4.9%), as well as for alcoholic beverages and tobacco (2.0% vs 1.2%). By contrast, price growth eased for other manufactured products (3.5% vs 4.5%).

Motor vehicles and other transport equipment provided the largest downward contribution, with prices falling 1.4%, followed by food products, where prices declined 0.9%.

On a monthly basis, factory gate prices increased 0.7% in August, following an upwardly revised 0.4% rise in July and beating forecasts of a 0.3% gain.