United Kingdom: Producer Inflation Picks Up to 2.6%

Factory gate prices for UK-manufactured goods climbed 2.6% year-on-year in March 2026, accelerating from 1.8% in February and marking the highest reading in three months. Of the 10 categories, nine contributed positively to the annual rate, led by a strong rebound in coke and refined petroleum products (14.6% vs -7.9% in February), amid surging global energy costs. Inflation also picked up for motor vehicles and other transport equipment (2.1% vs 1.8%), while price growth for other manufacturing outputs eased slightly to 2.7% (vs 2.8%), though it remained a key contributor to upward pressures. Meanwhile, inflation eased for food products (1.6% vs 2.4%), chemicals and pharmaceutical preparations (0.1% vs 0.9%), and basic metals (3.5% vs 3.7%). On a monthly basis, factory gate prices rose 0.9%, rebounding from a 0.5% fall in February, below expectations of a 1% gain but marking the sharpest rise since October 2022.