UK Producer Inflation at 4-Month Low of 3.1%

Factory gate prices for UK-manufactured goods advanced 3.1% year-on-year in July 2026, slowing from a 3.5% growth in June, marking the softest increase in four months. Eight of the 10 product groups made upward contributions to the annual rate, led by a jump in prices of coke and refined petroleum products (30.1% vs 41.3% in June) amid higher energy costs. Inflation accelerated for other manufactured products (4.6% vs 4.5% in June) and basic metals, fabricated metal products, and machinery (5.0% vs 5.2%). Meanwhile, motor vehicles and other transport equipment made the largest downward contribution, with prices declining 1.6%, followed by food products, where prices fell 0.8%. On a monthly basis, factory gate prices rose 0.2%, after a revised 0.1% drop in June.

UK Core Inflation Holds at 2.6% for Third Month

UK’s annual core inflation rate remained at 2.6% in July 2026, unchanged for the third consecutive month. It stayed at its highest level since March and slightly above market expectations of 2.5%. The annual rate for CPI goods accelerated (2.2% vs 1.7% in June), while CPI services inflation eased (3.4% vs 3.6%). On a monthly basis, core consumer prices rose 0.2%, slowing from 0.3% increases in both June and May and marking the softest monthly reading since January.

UK Inflation Rises to 4-Month High

annual inflation rate in the UK rose to 2.9% in July 2026, the highest in four months, from 2.6% in June and in line with market expectations. The largest upward contribution came from housing and household services (4.1% vs 2.7% in June), particularly gas and electricity. Prices of furniture and household goods (1% vs -0.2%) and clothing and footwear rebounded (0.5% vs -0.5%). On a monthly basis, the CPI increased 0.3%, following a 0.1% rise in the previous month.