UK Producer Inflation Slows to 3.4%

Factory gate prices for UK-manufactured goods experienced a 3.4% increase on a year-on-year basis in November 2025, marking a slight decrease from the 3.6% peak observed in October, which was the highest in over two years. This moderation in inflation was primarily influenced by a decline in prices for coke and refined petroleum products, which dropped by 0.6% year-on-year in November, mirroring the rate observed in October. Notably, seven out of ten product categories contributed to the annual inflation rate's rise, with significant gains observed in food products and motor vehicles, along with other transport equipment. The price growth for food products slowed to 4.2% from October's 4.6%, partly due to higher costs for processed and preserved meat, which accounted for the largest impact on the shift in the annual inflation rate. In contrast, the cost increases for motor vehicles and other transport equipment accelerated to 7.2%, up from a 6.6% rise in the preceding period. On a month-to-month basis, producer output prices edged up by 0.1%, consistent with the revised figure for October and aligning with market expectations.

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