Producer Price Inflation UK - October 2023

15th November 2023

Changes in the prices of goods bought and sold by UK manufacturers including price indices of materials and fuels purchased (input prices) and factory gate prices (output prices).

Producer input prices fell by 2.6% in the year to October 2023, down from a revised fall of 2.1% in the year to September 2023.

Producer output (factory gate) prices fell by 0.6% in the year to October 2023, down from a revised increase of 0.2% in the year to September 2023.

On a monthly basis, producer input prices rose by 0.4% and output prices rose by 0.1% in October 2023.

Inputs of fuel, and outputs of food products provided the largest downward contributions to change in the annual rates of input and output inflation, respectively.

While annual producer price inflation rates have generally been negative since June 2023, with prices in some sectors falling, the index levels for both input and output prices remain substantially higher than their 2021 levels, which is the last time producer price inflation was stable.

Producer price inflation rates
The annual inflation rate of the input Producer Price Index (PPI) was negative for the fifth consecutive month (Figure 1).

The annual inflation rate of the output PPI was negative for the third time in the last four months following an upward revision to the September annual rate, from negative 0.1% to positive 0.2%.

The index levels for both input and output prices have remained high since mid-2022 (Figure 2). The small changes seen in the past few months, when compared with the broadly stable values over the past year, have created a fall in the annual inflation rate, even though the index levels remain high.

Read the full report HERE