Table of contents
1. Main points
Producer input prices rose by 24.0% in the year to June 2022, up from 22.4% in the year to May 2022; this is the highest the rate has been since records began in January 1985.
Producer output (factory gate) prices rose by 16.5% in the year to June 2022, up from 15.8% in the year to May 2022; this is the highest the rate has been since September 1977.
Metals and non-metallic minerals, and food products provided the largest upward contributions to the annual rates of input and output inflation, respectively.
Services producer prices rose by 5.4% in the year to Quarter 2 (Apr to June) 2022, up from 4.2% in the year to Quarter 1 (Jan to Mar) 2022; this is the highest the rate has been since records began in Quarter 1 1999.
Information and communication services provided the largest upward contribution to the annual rate of the Services Producer Price Index (SPPI).
2. Producer price inflation (PPI) annual growth rates
The headline input index has been extended back to 1984 (Figure 1) using previously published data, while the headline output index has been extended back to 1974 (Figure 2); more information can be found in Section 8.
The annual rate of input PPI increased to 24.0% in the year to June 2022; the rate has now been positive for 19 consecutive months.
Figure 1: Input producer price inflation (PPI) annual growth rate has seen a sharp and sustained rise since May 2020 and has reached record levels
Input PPI, UK, January 1985 to June 2022
Source: Office for National Statistics – Producer Price Index
Download this chart Figure 1: Input producer price inflation (PPI) annual growth rate has seen a sharp and sustained rise since May 2020 and has reached record levels
Image .csv .xlsThe annual rate of output PPI increased to 16.5% in the year to June 2022; the rate has now been positive for 18 consecutive months.
Figure 2: Output producer price inflation (PPI) annual growth rate has seen a sharp and sustained rise since October 2020
Output PPI, UK, January 1975 to June 2022
Source: Office for National Statistics – Producer Price Index
Download this chart Figure 2: Output producer price inflation (PPI) annual growth rate has seen a sharp and sustained rise since October 2020
Image .csv .xlsInput and output PPI have both seen a sharp and sustained rise since May 2020 (Figure 3).
Figure 3: Input and output producer price inflation (PPI) index values
Input and output PPI, UK, June 2012 to June 2022
Source: Office for National Statistics – Producer Price Index
Download this chart Figure 3: Input and output producer price inflation (PPI) index values
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3. Producer price inflation (PPI) input prices
On the month, the rate of input inflation was 1.8% in June 2022, down from 2.4% in May 2022 (Table 3). The monthly rate has slowed for the third consecutive month following a record high of 5.0% in March 2022.
All materials and fuels purchased (GHIP) | |||||
---|---|---|---|---|---|
PPI Index (2015=100) | Monthly rate | annual rate | Change in the annual rate (percentage points) | ||
2021 | June | 122.4 | 0.5 | 9.6 | -0.7 |
July | 124.0 | 1.3 | 10.5 | 0.9 | |
Aug | 124.7 | 0.5 | 11.3 | 0.8 | |
Sept | 126.1 | 1.1 | 12.2 | 0.9 | |
Oct | 128.5 | 1.9 | 13.8 | 1.6 | |
Nov | 130.4 | 1.5 | 15.1 | 1.3 | |
Dec | 130.6 | 0.1 | 13.7 | -1.4 | |
2022 | Jan | 132.9 | 1.7 | 14.5 | 0.8 |
Feb | 135.1 | 1.7 | 15.3 | 0.8 | |
Mar | 141.9 | 5.0 | 19.2 | 3.9 | |
Apr | 145.6 | 2.6 | 20.9 | 1.7 | |
May | 149.1 | 2.4 | 22.4 | 1.5 | |
June | 151.8 | 1.8 | 24.0 | 1.6 |
Download this table Table 1: Input prices, index values, growth rates and percentage point change to the annual rate
.xls .csvThe largest upward contribution to the annual input inflation rate came from metals and non-metallic minerals, which contributed 5.62 percentage points (Figure 4). This product group had annual price growth of 26.0% in June 2022 (Table 2), which was up from 23.8% in May 2022. This is the highest the rate has been since November 2006 and was driven by basic iron and steel and ferro-alloys for the domestic market.
Figure 4: Metals and non-metallic minerals provided the largest upward contribution to the annual rate
Input producer price inflation (PPI), contribution to monthly and annual growth rate, UK, June 2022
Source: Office for National Statistics – Producer Price Index
Notes:
- Contributions to the rate may not add up to the rate exactly because of rounding.
Download this chart Figure 4: Metals and non-metallic minerals provided the largest upward contribution to the annual rate
Image .csv .xls
Product group | Percentage change | |
---|---|---|
Monthly rate | Annual rate | |
Beverages & tobacco | 0.4 | 4.8 |
Fuel excluding Climate Change Levy | -0.3 | 52.9 |
Crude oil | 7.9 | 94.8 |
Home food materials | 0.9 | 14.3 |
Imported food materials | 0.9 | 23.2 |
Other produced materials | 2.9 | 29.1 |
Metals & non-metallic minerals | 2.1 | 26.0 |
Chemicals | 1.7 | 22.3 |
Other parts and equipment | -0.2 | 7.7 |
Other inputs | 0.5 | 6.7 |
All manufacturing | 1.8 | 24.0 |
Download this table Table 2: Input prices, growth rates
.xls .csvThe monthly rate of imported inputs rose by 0.1 percentage point, from 2.6% in May 2022 to 2.7% in June 2022. The annual rate also rose, from 18.5% in May 2022 to 21.4% in June 2022 (Table 3). This is the highest the annual rate has ever been.
Imported materials and fuels purchased (GD74) | Sterling effective exchange rate - month average (BK67) | |||||||
---|---|---|---|---|---|---|---|---|
PPI Index (2015=100) | Monthly rate | Annual rate | Change in the annual rate (percentage points) | Sterling Index (Jan 2005=100) | Monthly rate | Annual rate | ||
2021 | June | 118.5 | 0.3 | 4.2 | -0.2 | 82.0 | 0.0 | 6.6 |
July | 119.6 | 1.0 | 4.3 | 0.1 | 81.8 | -0.2 | 6.2 | |
Aug | 119.1 | -0.5 | 4.2 | -0.1 | 82.0 | 0.2 | 4.9 | |
Sept | 120.4 | 1.2 | 4.6 | 0.4 | 81.5 | -0.6 | 5.6 | |
Oct | 121.3 | 0.7 | 5.4 | 0.8 | 82.0 | 0.6 | 5.9 | |
Nov | 122.9 | 1.3 | 7.2 | 1.8 | 81.5 | -0.6 | 4.1 | |
Dec | 123.6 | 0.6 | 6.7 | -0.5 | 81.4 | -0.1 | 4.2 | |
2022 | Jan | 124.2 | 0.5 | 6.9 | 0.2 | 82.7 | 1.6 | 4.6 |
Feb | 127.5 | 2.7 | 10.3 | 3.4 | 82.6 | -0.1 | 2.5 | |
Mar | 134.1 | 5.2 | 14.8 | 4.5 | 81.8 | -1.0 | 0.1 | |
Apr | 136.4 | 1.7 | 15.4 | 0.6 | 81.3 | -0.6 | -0.1 | |
May | 140.0 | 2.6 | 18.5 | 3.1 | 79.9 | -1.7 | -2.6 | |
June | 143.8 | 2.7 | 21.4 | 2.9 | 79.3 | -0.8 | -3.3 |
Download this table Table 3: Imported materials and fuels purchased and sterling effective exchange rate, index values, growth rates and percentage point change to the annual rate
.xls .csvIn the year to June 2022, the annual rate of input inflation was 24.0%, this is up 1.6 percentage points from 22.4% in May 2022.
Of the 10 product groups, eight showed upward contributions to the change in the annual rate, with metals and non-metallic minerals providing the largest, at 0.80 percentage points (Figure 5).
Figure 5: Metals and non-metallic minerals provided the largest upward contribution to the change in the annual rate
Input producer price inflation (PPI), contribution to change in the annual rate, UK, June 2022
Source: Office for National Statistics – Producer Price Index
Notes:
- Contributions to the rate may not add up to the rate exactly because of rounding.
Download this chart Figure 5: Metals and non-metallic minerals provided the largest upward contribution to the change in the annual rate
Image .csv .xls4. Producer price inflation (PPI) output prices
On the month, the rate of output inflation was 1.4% in June 2022, down from 1.6% in May 2022 (Table 4). This is the second consecutive month that the rate has slowed.
All manufactured products (GB7S) | |||||
---|---|---|---|---|---|
PPI Index (2015=100) | Monthly rate | Annual rate | Change in the annual rate (percentage points) | ||
2021 | June | 112.7 | 0.8 | 4.6 | 0.3 |
July | 113.9 | 1.0 | 5.4 | 0.8 | |
Aug | 114.6 | 0.7 | 6.2 | 0.8 | |
Sept | 115.4 | 0.7 | 7.0 | 0.8 | |
Oct | 117.4 | 1.7 | 8.8 | 1.8 | |
Nov | 118.6 | 1.0 | 9.5 | 0.7 | |
Dec | 119.0 | 0.4 | 9.5 | 0.0 | |
2022 | Jan | 120.5 | 1.3 | 10.1 | 0.6 |
Feb | 121.6 | 0.9 | 10.4 | 0.3 | |
Mar | 124 | 2.0 | 12.1 | 1.7 | |
Apr | 127.5 | 2.8 | 14.8 | 2.7 | |
May | 129.5 | 1.6 | 15.8 | 1.0 | |
June | 131.3 | 1.4 | 16.5 | 0.7 |
Download this table Table 4: Output prices, index values, growth rates and percentage point change to the annual rate
.xls .csvFood products provided the largest upward contribution to the output annual rate, at 4.13 percentage points (Figure 6), and had annual price growth of 12.3% in June 2022 (Table 5). This is the highest the annual rate has been for food products since September 2008 and was mainly driven by preserved meat and meat products for the domestic market.
Despite providing a downward contribution to the annual rate, tobacco and alcohol products increased by 3.4% in the year to June 2022. The downward contribution is driven by weight changes implemented as part of the move to annual chain-linking. More information is available in our Chain-linking in business prices article and in Section 8 of this release.
Figure 6: Food products provided the largest upward contribution to the annual rate
Output prices contribution to monthly and annual growth rate, UK, June 2022
Source: Office for National Statistics – Producer Price Index
Notes:
- Contributions to the rate may not add up to the rate exactly because of rounding.
Download this chart Figure 6: Food products provided the largest upward contribution to the annual rate
Image .csv .xls
Product group | Percentage Change | |
---|---|---|
Monthly rate | Annual rate | |
Food products | 1.8 | 12.3 |
Tobacco and alcohol (excl. duty) | 0.4 | 3.4 |
Clothing, textile and leather | 2.1 | 9.1 |
Paper and printing | 1.1 | 18.8 |
Petroleum products (excl. duty) | 7.5 | 86.1 |
Chemical and pharmaceutical | 1.0 | 22.9 |
Metal, machinery and equipment | 2.2 | 21.4 |
Computer, electrical and optical | 0.7 | 8.3 |
Transport equipment | -1.0 | 7.9 |
Other manufactured products | 0.8 | 13.4 |
All manufacturing | 1.4 | 16.5 |
Download this table Table 5: Output prices, growth rates
.xls .csvThe annual rate of output inflation increased by 0.7 percentage points from 15.8% in May 2022 to 16.5% in June 2022.
Of the 10 product groups, eight showed upward contributions to the change in the annual rate, with food products providing the largest, at 0.64 percentage points (Figure 7).
Figure 7: Food products made the largest upward contribution to the change in the annual rate
Output producer price inflation (PPI), contribution to change in the annual rate, UK, June 2022
Source: Office for National Statistics – Producer Price Index
Notes:
- Contributions to the rate may not add up to the rate exactly because of rounding.
Download this chart Figure 7: Food products made the largest upward contribution to the change in the annual rate
Image .csv .xls5. Services Producer Price Index (SPPI)
The annual rate of inflation for the Services Producer Price Index (SPPI) was 5.4% in Quarter 2 (Apr to June) 2022, up from 4.2% in Quarter 1 (Jan to Mar) 2022 (Figure 8). This is the highest the rate has ever been.
Figure 8: The annual rate of inflation for the Services Producer Price Index (SPPI) has seen a sharp and sustained rise since Quarter 4 (Oct to Dec) 2020 and has reached record levels
SPPI, UK, Quarter 2 (Apr to June) 2012 to Quarter 2 2022
Source: Office for National Statistics – Services Producer Price Index
Notes:
- Q1 refers to Quarter 1 (Jan to Mar), Q2 refers to Quarter 2 (Apr to June), Q3 refers to Quarter 3 (July to Sept) and Q4 refers to Quarter 4 (Oct to Dec).
Download this chart Figure 8: The annual rate of inflation for the Services Producer Price Index (SPPI) has seen a sharp and sustained rise since Quarter 4 (Oct to Dec) 2020 and has reached record levels
Image .csv .xlsThe quarter-on-quarter growth of services sold by UK companies was 1.8% in Quarter 2 2022, up from 1.4% in Quarter 1 2022 (Table 6). This is also a record high.
UK | |||||
---|---|---|---|---|---|
Percentage change | |||||
SPPI Index (2015=100) | QuarterLY | Annual | Change in the annual rate (percentage points) | ||
2021 | Q2 | 109.5 | 0.7 | 1.8 | 0.5 |
Q3 | 110.7 | 1.0 | 3.3 | 1.5 | |
Q4 | 111.8 | 1.0 | 3.6 | 0.3 | |
2022 | Q1 | 113.4 | 1.4 | 4.2 | 0.6 |
Q2 | 115.4 | 1.8 | 5.4 | 1.2 |
Download this table Table 6: Services producer prices
.xls .csvThe largest upward contribution to the annual rate came from information and communication services, at 5.78 percentage points (Figure 9), with an annual price increase of 2.2% (Table 7).
Transportation and storage services provided the largest upward contribution to the quarterly rate, at 0.95 percentage points, with a quarterly price increase of 5.1%.
Some SPPI product groups have seen downward contributions to the annual rate in Quarter 2 2022 but positive annual growth; this is driven by weight changes implemented as part of the move to annual chain-linking. More information is available in our Chain-linking in business prices article and in Section 8 of this release.
Figure 9: Information and communication services made the largest upward contribution to the Services Producer Price Index (SPPI) annual rate
SPPI, contribution to quarterly and annual growth rate, UK, Quarter 2 (Apr to June) 2022
Source: Office for National Statistics – Services Producer Price Index
Notes:
- Contributions to the rate may not add up to the rate exactly because of rounding.
Download this chart Figure 9: Information and communication services made the largest upward contribution to the Services Producer Price Index (SPPI) annual rate
Image .csv .xls
UK | ||
---|---|---|
Service group | Percentage change | |
Quarterly | Annual | |
Repair and maintenance of motor vehicles | 1.0 | 5.3 |
Transportation and storage | 5.1 | 11.6 |
Accommodation and food | 3.7 | 6.4 |
Information and communication | 0.3 | 2.2 |
Real estate activities | 1.1 | 3.1 |
Professional, scientific and technical activities | -0.4 | 4.3 |
Administrative and support services | 2.5 | 3.7 |
Education | 0.4 | 1.8 |
Other services | 2.6 | 6.5 |
SPPI | 1.8 | 5.4 |
Download this table Table 7: Services producer price inflation (SPPI), quarterly and annual percentage change
.xls .csv6. Producer price inflation data
Producer price inflation time series
Dataset | Released 20 July 2022
A comprehensive selection of data on input and output indices. Contains producer price indices of materials and fuels purchased and output of manufacturing industry by broad sector.
Output and input producer price inflation: contributions to the annual rates
Dataset | Released 20 July 2022
Contributions to the annual rates of input and output producer price inflation by component and overall rates.
Producer price inflation
Dataset MM22 | Released 20 July 2022
UK price movement data at all manufacturing, aggregated industry and product group level. Data supplied from individual manufacturers, importers and exporters. Monthly, quarterly and annual data.
7. Glossary
Weight
This is the importance of the price of interest relative to other prices collected. With annual chain-linking, this is updated every year using business turnover data.
Index value
Price level in a specific basket of goods.
Annual growth rate
The annual inflation rate.
Link factor
A smoothing factor applied to create a continuous series following a weights change.
Contribution
A measure of influence that the index has on the overall growth rate. This depends on both the magnitude of the weight and the inflation rate. A positive contribution is an index that is driving a change in the annual growth rate value. Where the contribution is positive but the growth is negative, this indicates that the index is reducing the annual growth rate (for example, the growth rate would be higher if this index had a lower weight).
Producer price inflation
Changes in the prices of goods bought and sold by UK manufacturers, including price indices of materials and fuels purchased (input prices) and factory gate prices (output prices).
Output prices
The factory gate price (output price) is the amount received by UK producers for the goods that they sell to the domestic market. It includes the margin that businesses make on goods, in addition to costs such as labour, raw materials and energy, as well as interest on loans, site or building maintenance, or rent.
Input prices
The input price measures the price of materials and fuels bought by UK manufacturers for processing. It includes materials and fuels that are both imported or sourced within the domestic market. It is not limited to materials used in the final product but includes what is required by businesses in their normal day-to-day running, such as fuels.
Services producer price inflation
Quarterly estimates monitoring the changes in prices charged for services provided to UK-based customers for a range of industries.
Back to table of contents8. Measuring the data
Producer price inflation (PPI) uses contributions to identify how indices influence the overall inflation rate. This section gives additional information on the calculation and how to interpret it.
Example scenarios
The following gives examples of how weight and inflation rate changes most commonly affect the contribution. In PPI, the weights usually have greater influence on the contribution as these tend to show greater change than the annual inflation rate.
Decrease in weight and in inflation rate – contribution is negative
Decrease in weight, increase in inflation rate – contribution is usually negative
No change in weight or inflation rate – no change
No change in weight, increase in inflation rate – no change
Increase in weight, decrease in inflation rate – contribution is usually positive
Increase in weight, no change in inflation rate – contribution is positive
Increase in weight, increase in inflation rate – contribution is positive
Contributions are calculated using the following formula:
Quality and methodology information (QMI) on strengths, limitations, appropriate uses, and how the data were created is available in our Producer Price Index (PPI) QMI report and our Services Producer Price Indices (SPPI) QMI report.
Other useful documentation for the PPI and the SPPI are:
Extension of back series
Prior to the April 2022 release, the existing back series of headline output (GB7S) and input (GHIP) data were available back to 1996. This release now sees an extension to these back series by making historical data readily available. PPI data going back to January 1974 have been stored digitally and so this publication sees the release of these index values, linked together and re-referenced to 2015 equals 100, for the headline PPI output series (GB7S).
For headline input (GHIP), this publication includes a back series to January 1984. Unlike the headline output index, the input headline was first introduced in the early 1990s, with the index data starting from 1984, hence the difference in available back series between the two headline indices.
Annual growth rates for the output and input back series are displayed in Figure 1 and Figure 2, respectively.
The addition of these back series does not affect the methodology used to calculate our previous data to 1996. For the periods January 1974 to December 1995, we have rescaled data from a number of historical rebased series to make these comparable with our previously published data.
Sterling effective exchange rate
The sterling effective exchange rate measures changes in the strength of sterling relative to baskets of other currencies. The sterling effective exchange rate is only indicative of the rates applied to producer prices. This is because the sterling effective exchange rate is a trade-weighted index that represents all UK trade, whereas producer prices reflect transactions in the manufacturing sector.
Economic statistics governance after EU exit
Following the UK's exit from the EU, new governance arrangements are being put in place that will support the adoption and implementation of high-quality standards for UK economic statistics. These governance arrangements will promote international comparability and add to the credibility and independence of the UK's statistical system.
At the centre of this new governance framework will be the new National Statistician’s Committee for Advice on Standards for Economic Statistics (NSCASE) run by the UK Statistics Authority. NSCASE will support the UK by ensuring its processes for influencing and adopting international statistical standards are world leading. The advice NSCASE provides to the National Statistician will span the full range of domains in economic statistics, including the national accounts, fiscal statistics, prices, trade and the balance of payments and labour market statistics.
Back to table of contents9. Strengths and limitations
Strengths
These data:
provide users with valuable insight into the changes in the prices of goods and services bought and sold by UK manufacturers
are comprehensive, covering many products at a much greater level of detail than other surveys
are internationally comparable with any country using the classification by product activity (CPA) or the central product classification (CPC) systems
are created using a rotational sampling method to enable many new products and new respondents to be included
are chain-linked annually to improve results in deflation by reducing substitution bias
Limitations
Some products are produced by only a small number of manufacturers, meaning that there may not be enough manufacturers for a detailed and robust analysis, and the sector may be volatile, requiring some estimation.
The data can be revised for 12 months.
The data for the latest two months of the Producer Price Index (PPI) and two quarters of the Services Producer Price Index (SPPI) are provisional.
Response rates in June 2022
Response rates for the domestic PPI and Import Price Index (IPI) show an increase between May and June 2022, whereas the response rate for the Export Price Index (EPI) shows a decrease between May and June 2022 (Table 8).
The response rate for SPPI shows an increase between Quarter 1 (Jan to Mar) 2022 and Quarter 2 (Apr to June) 2022 (Table 9).
Weighted response | |||
---|---|---|---|
PPI (domestic) | IPI | EPI | |
June 2021 | 77.1 | 75.3 | 64.8 |
July 2021 | 71.1 | 68.2 | 70.7 |
August 2021 | 73.0 | 67.9 | 72.8 |
September 2021 | 73.3 | 67.1 | 73.8 |
October 2021 | 67.1 | 70.5 | 67.3 |
November 2021 | 71.1 | 69.0 | 68.8 |
December 2021 | 68.6 | 70.0 | 63.6 |
January 2022 | 65.5 | 64.1 | 64.6 |
February 2022 | 70.5 | 70.3 | 69.2 |
March 2022 | 71.3 | 75.4 | 73.8 |
April 2022 | 71.4 | 68.2 | 74.2 |
May 2022 | 71.7 | 76.1 | 74.1 |
June 2022 | 74.0 | 78.0 | 69.5 |
Download this table Table 8: Producer price inflation (PPI), Import Price Index (IPI) and Export Price Index (EPI) overall effective response rates at time of first publishing
.xls .csv
Weighted Response SPPI | ||
---|---|---|
2021 | Q2 | 71.0 |
Q3 | 74.2 | |
Q4 | 71.3 | |
2022 | Q1 | 75.1 |
Q2 | 78.0 |