| Actual | Previous | Revised | |
| Output - M/M | 0.8% | 0.7% | |
| Output - Y/Y | 4.6% | 3.7% | 3.8% |
| Input - M/M | 1.5% | 0.3% | 0.5% |
| Input - Y/Y | 8.3% | 6.1% | 6.7% |
Highlights
The UK’s producer price inflation accelerated sharply in September 2026, signalling renewed supply-side pressures that could complicate the country’s disinflationary trajectory. Annual input price inflation increased to 8.3 percent, from 6.7 percent in August, while factory-gate inflation rose to 4.6 percent, its highest level since April 2023.
The widening gap between input and output inflation suggests that manufacturers face mounting production costs, potentially squeezing profit margins or prompting further price increases. Monthly input and output prices rose by 1.5 percent and 0.8 percent, respectively, driven predominantly by crude oil and refined petroleum products, which recorded substantial monthly increases of 14.0 percent and 9.1 percent.
Meanwhile, services producer inflation accelerated to 4.5 percent in the third quarter, reflecting persistent cost pressures, particularly in transportation and storage.
From a macroeconomic perspective, these developments raise concerns about inflation transmission across supply chains. If businesses increasingly pass higher production costs to consumers, headline inflation could remain elevated, constraining household purchasing power and complicating the Bank of England’s monetary easing decisions. Ultimately, sustained energy-driven cost pressures risk weakening industrial competitiveness, discouraging investment and prolonging the UK’s inflation-growth trade-off.