Story · United Kingdom · 16 Sept 2026
UK producer input prices rose 6.1% over the year to August 2026
UK producer input prices rose 6.1% over the year to August 2026, while factory-gate output prices rose 3.7%.
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6.1%
Annual producer input prices
3.7%
Annual producer output prices
0.7%
Monthly producer output prices
Exam link: Inflation → real incomes and purchasing power → consumption; policy response depends on the cause
Understand the storyExpand Close
The Office for National Statistics reported annual producer input-price inflation of 6.1% and annual output-price inflation of 3.7% in August 2026. Over the month, input prices rose 0.3% and output prices rose 0.7%.
What happened
Producer input prices rose 6.1% over the year and rose 0.3% over the month. Factory-gate output prices rose 3.7% over the year and rose 0.7% over the month.
Why it matters
Producer prices track cost pressures facing manufacturers before goods reach consumers. Faster input or factory-gate price growth can contribute to cost-push inflation, depending on firms' ability to absorb or pass on costs.
Economic context
For A-Level Economics, this is current evidence for cost-push inflation, firms' costs and short-run aggregate supply. Producer-price movements do not pass through mechanically to consumer prices, so evaluate market conditions and profit margins.
All key dataExpand Close
- Annual producer input prices
- 6.1%
- Annual producer output prices
- 3.7%
- Monthly producer input prices
- 0.3%
- Monthly producer output prices
- 0.7%
Use it in an examExpand Close
Evidence
UK producer input prices rose 6.1% over the year to August 2026, while factory-gate output prices rose 3.7%.
Explain
Producer prices track cost pressures facing manufacturers before goods reach consumers. Faster input or factory-gate price growth can contribute to cost-push inflation, depending on firms' ability to absorb or pass on costs.
Evaluate
For A-Level Economics, this is current evidence for cost-push inflation, firms' costs and short-run aggregate supply. Producer-price movements do not pass through mechanically to consumer prices, so evaluate market conditions and profit margins.
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