The Office for National Statistics has released the latest data on producer price inflation in the United Kingdom for August 2023.
Producer Input Prices
Producer input prices experienced a decrease of 2.3% in the year leading up to August 2023. This indicates an improvement from a revised fall of 3.2% in the year to July 2023. On a monthly basis, producer input prices rose by 0.4% in August 2023.
Notably, the decrease in input prices was influenced by a significant fall of 21.8% in the year to August 2023 in crude oil and petroleum products. However, it’s important to highlight that while annual producer price inflation rates have recently turned negative, the index levels for both input and output prices remain notably higher than their 2021 levels.
Producer Output Prices
Producer output (factory gate) prices also saw a decrease, falling by 0.4% in the year to August 2023, which is an improvement from a revised fall of 0.7% in the year to July 2023. On a monthly basis, producer output prices rose by 0.2% in August 2023.
The negative annual inflation rates in both input and output prices have been influenced by fluctuations in the prices of materials and fuels, including crude oil. However, the index levels for both input and output prices have remained consistently high since July 2022, despite recent decreases in inflation rates.
These figures highlight the ongoing trends in producer price inflation in the UK, which are crucial indicators of economic health and can impact various sectors of the economy.
Keywords: UK, Producer Price Inflation, Input Prices, Output Prices, Crude Oil, Economic Indicators