25.03.202607:20:46UTC+00UK Producer Inflation Hits 10-Month Low

Factory gate prices for UK‑manufactured goods rose 1.7% year-on-year in February 2026, slowing from a 2.5% increase in January and confounding expectations of a slight acceleration to 2.6%. This was the weakest annual reading since April of the previous year.

The main downward pressure came from coke and refined petroleum products, where prices fell 8.6%, a deeper decline than January’s 7.7%, exerting the largest drag on the overall rate. Producer price inflation also softened markedly for motor vehicles and transport equipment, with annual price growth dropping to 1.8% from 5.5%.

Inflation eased as well for food products (2.4% vs 3.2%) and for other manufacturing outputs (2.7% vs 2.9%). Both categories, however, remained significant upward contributors to overall producer inflation, with food prices in part supported by higher beef costs amid ongoing supply‑demand imbalances.

On a monthly basis, producer output prices declined 0.5% in February, following a flat reading in January and surprising forecasters who had anticipated a 0.2% increase.