On a monthly basis, producer input prices fell by 1.7 per cent in July 2026, compared with a revised 1.9 per cent fall in June, while producer output prices rose by 0.2 per cent after a revised 0.1 per cent fall in June. Crude oil made the largest contribution to the fall in the annual input inflation rate, with prices down 18 per cent month on month, while refined petroleum products made the largest contribution to the fall in annual output inflation, declining 2.9 per cent on the month.
UK input PPI eased to 4.9 per cent year on year in July 2026; factory gate inflation slowed to 3.1 per cent from 3.5 per cent in June.
Monthly input prices fell 1.7 per cent, driven by an 18 per cent drop in crude oil, while output prices rose 0.2 per cent.
Import prices rose 5.2 per cent year on year but fell 2.5 per cent month on month, informing UK textile and apparel sourcing costs.
ONS in a press release said the data cover changes in the prices of goods bought and sold by UK manufacturers, including materials and fuels purchased as input prices and factory gate prices as output prices.
Both June and July 2026 are provisional, and Producer Price Index figures for the latest 12 months are subject to revisions as additional survey data are returned and validated.
Of the 10 input Producer Price Index product groups, nine made upward contributions to the annual inflation rate in July 2026.
Crude oil input prices rose by 10.6 per cent in the year to July 2026, sharply lower than a revised 41.9 per cent annual increase in June. On the month, crude oil prices fell by 18.0 per cent in July, compared with a revised 20.9 per cent decrease in June.
The Import Price Index, which measures the price of materials and fuels imported by UK manufacturers, rose by 5.2 per cent in the year to July 2026, down from a revised 9.0 per cent increase in June. Import prices fell by 2.5 per cent month on month between June and July, compared with a revised 1.6 per cent fall between May and June. The annual increase was mainly caused by non-European Union imports of refined petroleum products. The sterling effective exchange rate rose by 0.6 per cent in the year to July, after a 1.4 per cent fall in the year to June, added the release.
Prices for other manufacturing outputs rose by 4.6 per cent in the year to July 2026, up from a revised 4.5 per cent increase in June, reflecting higher prices for plastic products as input costs of PVC and resin increased because of the conflict in the Middle East, as well as higher prices for repair services of fabricated metal products, machinery and equipment.
Fibre2Fashion News Desk