Producer Price Inflation UK - May 2023

21st June 2023

Producer input prices rose by 0.5% in the year to May 2023, down from a rise of 4.2% in the year to April 2023.

Producer output (factory gate) prices rose by 2.9% in the year to May 2023, down from a rise of 5.2% in the year to April 2023.

Inputs of crude oil and petroleum products provided the largest downward contributions to the change in the annual rates of input and output inflation, respectively.

While annual producer price inflation rates have been slowing in recent months, the index levels for both input and output prices have been broadly stable since June 2022.

On a monthly basis, producer input prices fell by 1.5% and output prices by 0.5% in May 2023.

Producer price inflation rates
The annual rate of the input Producer Price Index (PPI) has now been positive for 30 consecutive months, although it has been slowing for the past 11 months. The annual rate is now 23.9 percentage points below its record annual high of 24.4% in June 2022 (Figure 1).

The annual rate of the output PPI has now been positive for 29 consecutive months, but it has been slowing for the past 10 months. It is down 16.7 percentage points from its recent peak of 19.6% in July 2022.

The index levels for both input and output prices have been broadly stable since June 2022 after a period of rapid increase starting in 2021 and continuing into early 2022 (Figure 2). This levelling out, when compared with the rapid increases seen last year, has the effect of creating a fall in the annual inflation rate (Figure 1)

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