Story · United Kingdom · 19 Aug 2026
UK producer-price inflation eased in July 2026
UK producer input prices were 4.9% higher than a year earlier in July 2026 and factory-gate output prices were 3.1% higher, with both annual rates easing from June.
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4.9%
UK producer input-price inflation, July 2026 vs July 2025
3.1%
UK factory-gate output-price inflation, July 2026 vs July 2025
+0.2%
UK factory-gate output prices, July vs June 2026
Exam link: Inflation → real incomes and purchasing power → consumption; policy response depends on the cause
Understand the storyExpand Close
ONS reported annual producer input-price inflation of 4.9% in July 2026, down from a revised 7.4% in June, while output-price inflation eased to 3.1% from 3.5%. Input prices fell 1.7% during July and output prices rose 0.2%.
What happened
Producer input prices fell 1.7% between June and July 2026 but remained 4.9% above July 2025. Factory-gate output prices rose 0.2% on the month and 3.1% on the year. Crude oil made the largest contribution to the fall in annual input-price inflation.
Why it matters
Producer prices show cost pressure moving through supply chains before or alongside consumer prices. Falling input inflation can reduce pressure on firms' margins and future consumer prices, although pass-through depends on competition, wages and demand.
Economic context
PPI measures prices faced and charged by manufacturers, not household inflation directly. The latest estimates are provisional and can be revised as more survey responses arrive, so one month should not be treated as a permanent trend.
All key dataExpand Close
- UK producer input prices, July vs June 2026
- -1.7%
- UK factory-gate output prices, July vs June 2026
- +0.2%
- UK producer input-price inflation, July 2026 vs July 2025
- 4.9%
- UK factory-gate output-price inflation, July 2026 vs July 2025
- 3.1%
Use it in an examExpand Close
Evidence
UK producer input prices were 4.9% higher than a year earlier in July 2026 and factory-gate output prices were 3.1% higher, with both annual rates easing from June.
Explain
Producer prices show cost pressure moving through supply chains before or alongside consumer prices. Falling input inflation can reduce pressure on firms' margins and future consumer prices, although pass-through depends on competition, wages and demand.
Evaluate
PPI measures prices faced and charged by manufacturers, not household inflation directly. The latest estimates are provisional and can be revised as more survey responses arrive, so one month should not be treated as a permanent trend.
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