UK Producer Prices Fall More Than Expected

Factory gate prices for goods produced by UK manufacturers fell 0.7% year-on-year in September 2024, following a 0.3% rise in August and coming more than market expectations of a 0.6% fall.

This also marks the first deflation since January, mainly due to a continued decline in prices for coke and refined petroleum products (-22.5% vs -9.3% in August), chemicals and pharmaceutical preparations (-0.6% vs -0.9%), and paper, paper products and printed materials (-0.4% vs -0.7%).

On a monthly basis, producer prices dropped 0.5%, falling for the second consecutive period after a 0.3% decline in August.