# UK factory gate inflation rises to 3.7% as refined petroleum prices climb 49%

> Output prices rose 3.7% in the year to August 2026 and input prices 6.1%, the ONS said on 16 September, with crude oil the biggest driver of manufacturers' costs.

- Canonical URL: https://forextradingcommunity.com/news/uk-producer-prices-august-2026/
- Type: Data
- Published: 2026-09-17
- Updated: 2026-09-17
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: GBP

The Office for National Statistics published producer price inflation for August 2026 on 16 September, alongside the consumer price figures.

## The figures

- **Output prices** (the prices manufacturers charge, known as factory gate prices): up 3.7% in the 12 months to August, from 3.3% in July. On the month they rose 0.7%, after 0.4% in July.
- **Input prices** (materials and fuels manufacturers buy): up 6.1%, from 5.8% in July. On the month they rose 0.3%, after a fall of 0.8% in July.

## What drove them

Input prices:

- **Crude oil**: up 26.7% on a year earlier, the largest contribution
- **Metals and non-metallic minerals**: up 8.8%

Output prices:

- **Coke and refined petroleum products**: up 49.1%, the largest contribution
- **Basic metals, fabricated metal products and machinery**: up 5.6%
- **Other manufactured products**: up 3.5%

## Why producer prices matter

Producer prices show cost pressure before it reaches shops. Manufacturers who pay 6.1% more for inputs may pass some of that on, which is one reason the Bank of England looks at them alongside consumer inflation. In August, consumer price inflation rose to 3.1% while core inflation held at 2.6% ([report](/news/uk-inflation-august-2026-3-1-percent/)), so the energy shock shows up in both sets of figures.

The Bank of England announces its decision on 17 September at 12:00 UK time ([preview](/news/bank-of-england-september-2026-preview/)). The next producer price figures are due on 21 October. Live prices: [GBP/USD](/markets/gbp-usd/).

## Sources

- [Office for National Statistics: Producer price inflation, UK: August 2026](https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/producerpriceinflation/august2026)

## Common questions

### What are factory gate prices?

The prices UK manufacturers charge for the goods they produce, measured by the output producer price index. Input prices measure what they pay for materials and fuels.

### What was UK producer price inflation in August 2026?

Output prices rose 3.7% and input prices 6.1% in the 12 months to August 2026, up from 3.3% and 5.8% in July, according to the Office for National Statistics.

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