UK Producer Prices Fall Less than Expected

Factory gate prices of goods produced by UK manufacturers fell 0.6% year-on-year in October 2023, shifting from an upwardly revised 0.2% increase in the previous month but below market estimates of 1% fall.

It was also the highest deflation since July, as prices slipped further for paper & paper products & printed material (-2.8% vs -1.3%), coke & refined petroleum products (-19.2% vs -17.2%) and chemicals & pharmaceutical preparations (-10.3% vs -10%).

Additionally, costs eased for food products (3% vs 4.2%), textiles, wearing apparel & leather products (5.8% vs 6.4%), and computer, electronic & electrical products (3.7% vs 4%).

Meanwhile, inflation edged up for basic metals, fabricated metal products & machinery (2.1% vs 2%), while unchanged for alcoholic beverages & tobacco products (13.7%).

On a monthly basis, output producer slowed to 0.1% in October from an upwardly revised 0.6% rise in the previous month.