| Actual | Previous | Revised | |
| Output - M/M | 0.2% | 0.0% | 0.0% |
| Output - Y/Y | 3.1% | 3.5% | 3.5% |
| Input - M/M | -1.7% | -2.0% | -1.9% |
| Input - Y/Y | 4.9% | 7.3% | 7.4% |
Highlights
UK producer price inflation moderated in July 2026, signalling an easing of cost pressures within the production pipeline. Annual input price inflation declined sharply from a revised 7.4 percent in June to 4.9 percent, while factory-gate inflation fell more modestly from 3.5 percent to 3.1 percent. This suggests that manufacturers experienced considerable cost relief, although the benefits were not yet fully transferred to customers.
Energy prices were the principal force behind this improvement. Crude oil prices fell by 18.0 percent during the month, producing the largest downward contribution to input inflation. Similarly, a 2.9 percent monthly decline in refined petroleum product prices reduced output inflation. These movements demonstrate the strong influence of global energy markets on domestic production costs.
The monthly figures reveal a noteworthy contrast as input prices fell by 1.7 percent, yet factory-gate prices increased by 0.2 percent. Overall, inflationary pressure at the beginning of the supply chain weakened substantially. However, the continued rise in output prices indicates that lower input costs may take time to reach businesses and consumers.