| Actual | Previous | Revised | |
| Output - M/M | 0.7% | 0.2% | 0.4% |
| Output - Y/Y | 3.7% | 3.1% | 3.3% |
| Input - M/M | 0.3% | -1.7% | -0.8% |
| Input - Y/Y | 6.1% | 4.9% | 5.8% |
Highlights
UK producer price inflation accelerated in August 2026, signalling increasing cost pressures across the manufacturing supply chain. Annual input price inflation rose from a revised 5.8 percent in July to 6.1 percent, while factory-gate inflation increased from 3.3 percent to 3.7 percent. Monthly input and output prices also rose by 0.3 percent and 0.7 percent from a revised minus 0.8 and 0.4 percent respectively the previous month.
Refined petroleum products were the principal source of this acceleration. Prices for other produced materials, including refined petroleum, increased by 2.1 percent during the month and made the largest contribution to annual input inflation. More significantly, refined petroleum output prices surged by 8.6 percent, indicating a sharp energy-related shock to producers.
The stronger rise in input prices than output prices suggests that manufacturers are not yet transferring the full increase in production costs to customers. Consequently, firms may experience pressure on profit margins, particularly in energy-intensive industries. However, the faster monthly increase in factory-gate prices indicates growing cost pass-through. If petroleum prices remain elevated, consumer inflation could increase further as higher production and distribution costs move through supply chains.