Preliminary data from the Office for National Statistics (ONS) have revealed that Britain’s producer output price inflation climbed to a two-year high of 1.9% in June, up from 1.3% in May, signalling renewed inflationary pressures on the economy.
The ONS had suspended the publication of Producer Price Index (PPI) data in March after uncovering calculation errors dating back to 2020. The latest release represents interim data, with regular publication scheduled to resume in October.
In July, the ONS admitted that producer price inflation in previous years had been underestimated. The revised figures confirmed upward corrections, including an increase in the April output inflation rate from 0.5% to 0.7%, though officials said the adjustments aligned with earlier expectations.
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According to Reuters, producers’ input prices fell by 1.0% in the year to June, mirroring the decline in May. The ONS attributed the drop to a sharp 24.1% fall in crude oil and natural gas costs.
Producer price data is closely monitored by the Bank of England as an indicator of underlying inflationary pressures and their potential impact on consumer prices.
Already, Britain’s Consumer Price Index (CPI) rose to an 18-month high of 3.8% in July, the steepest among major advanced economies, with forecasts suggesting a rise to 4% in September.
The PPI data also feeds into key economic indicators, including GDP, trade, and construction statistics.
However, the ONS stated that the revisions would have a “negligible” effect on published GDP figures for 2025.
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