Producer price inflation UK - December 2024 including services, October to December 2024
15th January 2025
Producer input prices fell by 1.5% in the year to December 2024, up from a revised fall of 2.1% in the year to November.
Producer output (factory gate) prices rose by 0.1% in the year to December 2024, up from a revised fall of 0.5% in the year to November.
On a monthly basis, producer input prices and output (factory gate) prices both rose by 0.1% in December 2024.
Inputs of other parts and equipment, and coke and refined petroleum products provided the largest upward contributions to change in the annual inflation rates for input and output prices, respectively.
Services producer prices rose by 2.9% in the year to Quarter 4 (Oct to Dec) 2024, down from a revised increase of 3.7% in the year to Quarter 3 (July to Sept).
Producer price inflation rates
Producer input prices fell by 1.5% in the year to December 2024. This is up from a revised fall of 2.1% in the year to November (Figure 1). Monthly input prices rose by 0.1% in December 2024, following no change in November (Table 1).
Producer output (factory gate) prices rose by 0.1% in the year to December 2024. This is up from a revised fall of 0.5% in the year to November (Figure 1). Monthly output prices also rose by 0.1% in December 2024, following a revised monthly inflation rate of 0.4% in November (Table 1).
Estimates for both November and December 2024 are provisional. Figures for the latest 12 months are subject to revisions as additional survey data are returned and validated. Effective response rates at the time of first publishing can be found in Section 8: Data sources and quality.
Input producer price inflation
Of the 10 product groups for the input Producer Price Index (PPI), 5 made downward contributions to the annual inflation rate in December 2024. The largest of these came from inputs of fuel and inputs of crude oil, which contributed negative 0.83 percentage points and negative 0.60 percentage points, respectively (Figure 2).
The prices of inputs of fuel fell by 15.0% in the year to December 2024, compared with a fall of 12.8% in the year to November (Table 2). Both electricity and gas prices fell in the year to December 2024, by 13.8% and 21.3%, respectively.
The price of inputs of crude oil fell by 10.2% in the year to December 2024, compared with a fall of 16.5% in the year to November (Table 2). This was mainly caused by crude petroleum prices, which fell by 13.7% in the year to December 2024.
Inputs of "other parts and equipment", and inputs of crude oil provided the largest contributions to the change in the annual inflation rate between November and December 2024, with upward contributions of 0.89 percentage points and 0.37 percentage points, respectively.
The change in crude oil prices was partly caused by a base effect, with monthly prices falling 5.8% in December 2023, compared with a monthly increase of 1.3% in December 2024. We explain this in further detail in our Beware base effects blog post.
The largest offsetting upward contribution to the annual inflation rate came from inputs of metals and non-metallic mineral products, which contributed 0.12 percentage points (Figure 2). Prices for this product group increased by 0.6% in the year to December 2024 (Table 2), which was partly caused by increased aluminium prices.
Table of contents
Main points
Producer price inflation rates
Input producer price inflation
Output producer price inflation
Services producer price inflation
Data on producer price inflation
Glossary
Data sources and quality
Related links
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1.Main points
Producer input prices fell by 1.5% in the year to December 2024, up from a revised fall of 2.1% in the year to November.
Producer output (factory gate) prices rose by 0.1% in the year to December 2024, up from a revised fall of 0.5% in the year to November.
On a monthly basis, producer input prices and output (factory gate) prices both rose by 0.1% in December 2024.
Inputs of other parts and equipment, and coke and refined petroleum products provided the largest upward contributions to change in the annual inflation rates for input and output prices, respectively.
Services producer prices rose by 2.9% in the year to Quarter 4 (Oct to Dec) 2024, down from a revised increase of 3.7% in the year to Quarter 3 (July to Sept).
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2.Producer price inflation rates
Producer input prices fell by 1.5% in the year to December 2024. This is up from a revised fall of 2.1% in the year to November (Figure 1). Monthly input prices rose by 0.1% in December 2024, following no change in November (Table 1).
Producer output (factory gate) prices rose by 0.1% in the year to December 2024. This is up from a revised fall of 0.5% in the year to November (Figure 1). Monthly output prices also rose by 0.1% in December 2024, following a revised monthly inflation rate of 0.4% in November (Table 1).
Estimates for both November and December 2024 are provisional. Figures for the latest 12 months are subject to revisions as additional survey data are returned and validated. Effective response rates at the time of first publishing can be found in Section 8: Data sources and quality.
Because of rounding, inflation rates in this bulletin may not correspond to index value changes, and contributions to the rate may not add up to the rate exactly.
Table 1: PPI values and inflation rates
UK, December 2023 to December 2024
All materials and fuels purchased (GHIP) All manufactured products (GB7S)
Input PPI
(2015=100) Monthly
inflation
rate (%) Annual
inflation
rate (%) Output PPI
(2015=100) Monthly
inflation
rate (%) Annual
inflation
rate (%)
2023 Dec 148.7 -0.4 -2.2 136.3 -0.4 0.1
2024 Jan 148.2 -0.3 -2.9 136.4 0.1 -0.2
Feb 148.6 0.3 -2.2 136.8 0.3 0.5
Mar 148.3 -0.2 -2.6 137.1 0.2 0.6
Apr 149.7 1.0 -1.3 137.5 0.3 1.1
May 148.6 -0.8 -0.8 137.6 0.0 1.7
June 148.1 -0.3 0.1 136.8 -0.6 1.2
July 147.7 -0.3 0.3 136.8 0.0 0.9
Aug 147.1 -0.4 -1.1 136.4 -0.3 0.3
Sept 146.2 -0.6 -2.1 135.8 -0.4 -0.6
Oct 146.3 0.1 -2.5 135.7 -0.1 -0.9
Nov 146.3 0.0 -2.1 136.3 0.4 -0.5
Dec 146.4 0.1 -1.5 136.3 0.1 0.1
Source: Producer Price Index (PPI) from the Office for National Statistics
Download this tableTable 1: PPI values and inflation rates
.xls .csv
Figure 1: The annual inflation rates for both input and output PPI rose in December 2024
Input and output PPI annual inflation rates, UK, December 2014 to December 2024
Input PPIOutput PPIDec 2024Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019Dec 2018Dec 2017Dec 2016Dec 2015Dec 2014-100102030%
Jan 2017
● Input PPI: 10.3
Source: Producer Price Index (PPI) from the Office for National Statistics
Download this chartFigure 1: The annual inflation rates for both input and output PPI rose in December 2024
Image .csv .xls
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3.Input producer price inflation
Of the 10 product groups for the input Producer Price Index (PPI), 5 made downward contributions to the annual inflation rate in December 2024. The largest of these came from inputs of fuel and inputs of crude oil, which contributed negative 0.83 percentage points and negative 0.60 percentage points, respectively (Figure 2).
The prices of inputs of fuel fell by 15.0% in the year to December 2024, compared with a fall of 12.8% in the year to November (Table 2). Both electricity and gas prices fell in the year to December 2024, by 13.8% and 21.3%, respectively.
The price of inputs of crude oil fell by 10.2% in the year to December 2024, compared with a fall of 16.5% in the year to November (Table 2). This was mainly caused by crude petroleum prices, which fell by 13.7% in the year to December 2024.
Inputs of "other parts and equipment", and inputs of crude oil provided the largest contributions to the change in the annual inflation rate between November and December 2024, with upward contributions of 0.89 percentage points and 0.37 percentage points, respectively.
The change in crude oil prices was partly caused by a base effect, with monthly prices falling 5.8% in December 2023, compared with a monthly increase of 1.3% in December 2024. We explain this in further detail in our Beware base effects blog post.
The largest offsetting upward contribution to the annual inflation rate came from inputs of metals and non-metallic mineral products, which contributed 0.12 percentage points (Figure 2). Prices for this product group increased by 0.6% in the year to December 2024 (Table 2), which was partly caused by increased aluminium prices.
Figure 2: Fuel made the largest downward contribution to the annual inflation rate of input PPI in December 2024
Input PPI, percentage point contributions to the annual inflation rate, UK, November and December 2024
Beverages and tobaccoFuelCrude petroleum and natural gas; Metal oresFood (Domestic)Food (Imported)Other produced materialMetals and non-metallic mineral productsChemicalsOther parts and equipmentOther inputsInput PPI annual inflation rateNovember 2024December 2024-3-2.5-2-1.5-1-0.500.51Percentage points (bars) and % (line)
November 2024
● Beverages and tobacco: 0.01
● Fuel: -0.63
● Crude petroleum and natural gas; Metal ores: -0.97
● Food (Domestic): 0.26
● Food (Imported): -0.08
● Other produced material: -0.13
● Metals and non-metallic mineral products: 0.23
● Chemicals: -0.08
● Other parts and equipment: -0.80
● Other inputs: 0.12
● Input PPI annual inflation rate: -2.10
Source: Producer Price Index (PPI) from the Office for National Statistics
Notes:
Fuel covers electricity and gas (D35) and coal (B05) of the classification of products by activity (CPA 2.1).
Estimates for November 2024 have been revised.
Download this chartFigure 2: Fuel made the largest downward contribution to the annual inflation rate of input PPI in December 2024
Image .csv .xls
Table 2: Input producer price inflation rates and contributions to the annual inflation rates
UK, November and December 2024
November 2024 December 2024
Product
group Monthly
inflation
rate (%) Annual
inflation
rate (%) Contribution
to annual
inflation rate
(percentage
points) Monthly
inflation
rate (%) Annual
inflation
rate (%) Contribution
to annual
inflation rate
(percentage
points)
Beverages
and
tobacco 0.4 0.6 0.01 -0.2 -0.5 0.00
Fuel -0.6 -12.8 -0.63 0.8 -15.0 -0.83
Crude
petroleum
and
natural gas;
Metal ores -2.4 -16.5 -0.97 1.3 -10.2 -0.60
Food
(Domestic) -0.1 0.3 0.26 0.7 0.2 0.03
Food
(Imported) 0.3 -4.7 -0.08 -0.5 -5.5 -0.15
Other produced
material 0.9 -2.8 -0.13 -0.2 -1.6 -0.17
Metals and
non-metallic
mineral
products 0.3 0.5 0.23 -0.3 0.6 0.12
Chemicals -0.3 -1.6 -0.08 0.3 -0.7 -0.11
Other parts
and
equipment 0.1 0.4 -0.80 -0.1 0.5 0.10
Other
inputs 0.3 3.2 0.12 0.0 3.3 0.09
Source: Producer Price Index (PPI) from the Office for National Statistics
Download this tableTable 2: Input producer price inflation rates and contributions to the annual inflation rates
.xls .csv
The prices of materials and fuels imported by UK manufacturers fell by 2.7% in the year to December 2024, following a revised fall of 4.5% in the year to November. On a monthly basis, prices were unchanged between November and December 2024, compared with a revised monthly inflation rate of 0.6% between October and November. The fall in import prices in the year to December 2024 may partly reflect the higher level of sterling, which rose by 3.3% in the same year (Table 3).
Output producer price inflation
Of the 10 product groups for the output Producer Price Index (PPI), 7 made upward contributions to the annual inflation rate in December 2024. The largest of these came from "other outputs from manufacturing", and outputs of food products, which contributed 0.97 percentage points, and 0.68 percentage points, respectively (Figure 3).
Prices for "other outputs from manufacturing" rose by 1.7% in the year to December 2024 (Table 4), compared with a rise of 1.9% in the year to November (Table 4).
Prices for food products rose by 1.9% in the year to December 2024, compared with a rise of 1.8% in the year to November (Table 4).
Coke and refined petroleum products made the largest contribution to the change in the annual inflation rate in December 2024, with an upward contribution of 0.57 percentage points. Prices fell by 16.1% in the year to December 2024, up from a price fall of 22.4% in November. This was partly caused by a base effect, with monthly prices decreasing 7.1% in December 2023, compared with a monthly increase of 0.5% in December 2024.
The largest offsetting downward contribution to the annual inflation rate came from chemicals and pharmaceutical preparations, which contributed negative 1.13 percentage points. Prices rose by 0.4% in the year to December 2024.
Read more details at ONS HERE
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