Factory Gate Prices Up 5.9%

The output price index for UK manufactured goods according to the ONS producer price index bulletin for July 2011 increased by 5.9% over the year compared with 5.7% last month. The index for July compared with June rose by 0.2% mainly due to price rises in food and clothing, textiles and leather goods.

The output price index excluding volatile products like food and beverages rose 3.3%. The index excluding excise duty rose 6%.

Input prices rose by 18.5%. Manufacturing excluding food and beverages rose 13.1% over the year to July. Between June and July the total index increased by 0.6% mainly due to price increases for crude oil and other imported materials. The total price of imported materials rose by 1.3% between June and July.

Producer Prices Increases Again

The most recent producer prices statistical bulletin from the ONS shaowed that in the year to March 2011 output prices rose by 5.4% and input prices rose by 14.6%.

Manufacturing inputs rose in price by 3.7% between February and March 2011 mainly reflecting the increase in prices for crude oil.

Output prices for food products rose 0.5% between february and March and 7.4% in the year to March. In particular, dairy products increased 1.1% notably butter, up 0.4% and bakery products up 0.5%.

Inflation Up To 4%

The latest inflation data from the ONS says that CPI annual inflation now stands at 4% from 3.7% in December. The government target for CPI is 2%. The main contributory factors were petrol and diesel prices, restaurants and cafes, furniture and furnishings, alcoholic beverages and vehicle purchases. Two important factors that also made an impact were the increase in VAT and the price of crude oil. Downward pressure on the CPI came from recreation and culture, banking services and clothing and footwear. The RPI increased from 4.8% in December to 5.1% in January 2011.

The all items CPI hasn't been higher since November 2008, non-alcoholic beverages, restaurants and hotels and petrol haven't been higher since records began.

Pricen Rises For Producers In October

Output prices for home sales of manufactured goods rose 4% in the year to October and 0.6% over the month. Input prices for materials and fuels for manufacturing rose by 8% in the year to October and 2.1% over the month.

On the output side, petroleum products increased by 10.6% and chemicals and pharmaceuticals by 6% over the year while clothing, textiles and leather increased by only 1.4%. Within the inputs imported metals increased by 20.5% and crude oil increased by 16.2%. Fuel fell by 4.8% over the year to October.

Factory Gate Prices Increased In August

Producer output and input price indices from the ONS increased in August. The output index for home sales of manufactured goods increased by 4.7% over the year to August. The monthly index between July and August was unchanged. The inputs index shows an increase of 8.1% over the year but a fall of 0.5% over the month to August.

The main contribution to the change in the annual output index was an increase of 11.6% in the price of petroleum products. Other significant contributions came from 'other products' (6.9%) and electrical and optical (6.5%). On the inputs side, significant contributions were made by imported metals (17.5%), crude oil (11.8%) and imported chemicals (10.7%).

Factory Gate Prices Increase Again

Output prices for home sales of manufactured goods went up 5.7% over the year to April 2010 compared to 5% to March. Excluding excise duties changes the increase was 5.3% over the year and 1.3% over the month. The monthly index rose 1.4% between March and April.

Input prices went up 13.1% in the year and 0.6% over the month. The increase mainly reflects the increases in the price of crude oil and imported metals. Imported materials increased in price by 0.8% between March and April.

5% Increase In Factory Gate Prices

Output prices for home sales of manufactured products increased by 5% in year to March, from 4.2% last month and 0.9% between February and March. The increase mainly reflects the 24.8% increase in output price for petroleum products over the year. It is the highest increase since September 2008. Electrical and optical increased by 6.3% and chemicals by 4.5%. Excise duties did not contribute that much to the increase. The output price index excluding volatile priced products like food, beverages, tobacco and petroleum increased by 3.6% in the year and 0.7% in the month to March. The output price of petroleum products increased 3.9% over the month. The index for paper products is the lowest it has been since January 2006.

Input prices for materials and fuel for the manufacturing industries increased by 10.1% in the year and 3.6% in the month to March. The increases mainly reflect the 60% increase in price for crude oil and 14.4% increase in price for imported metals over the year. Imported materials as a whole increased 4.4% between February and March. If the more volatile categories are excluded the index increased 4% over the year and 1.1% in the month between February and March. The price of crude oil increased 9.7% in the month between February and March and imported metals 5.3%. It is the largest monthly rise since records began in February 1991.

The producer price index is important because because it provides a key inflation measure as important as the CPI or the RPI and works on a similar 'basket of goods' principle. The current data is from the statistical release from the Office for National Statistics for March 2010.

Inflation At The Factory Gate Up 4.1%

The output price index for home sales of manufactured products rose by 4.1% over the year to February as compared to January when it rose by 3.8% and 0.3% between January and February to 116.8. The incrrase was mainly due to price rises in chemical products, tobacco and alcohol products and other manufcatured goods. If excise duties are excluded the increases were 3.7% over the year and 0.3% over the month. If the more volatile sectors such as food, beverages, tobacco and petroleum are excluded the increase was 2.9% over the year and 0.3% over the month.

The input price index for materials and fuels bought by the manufacturing industry increased by 6.9% over the year to February and 0.1% over the month to February. The increases are mainly the result of price rises in imported parts and equipment, chemicals and other imported materials. These were offset by falls in the price of fuel and crude oil. Import prices as a whole increased by 0.3% between January and February. If food, beverages, tobacco and petroleum prices are excluded the increases were 1.9% over the year and 0.5% over the month.

Looking at output prices in more detail the price of petroleum products increased by 20% over the year, the next largest increase was electrical and optical which rose by 5.1%. The changes over the month were minor in comparison. Chemical products increased by 0.6%, the biggest increase followed by tobacco and alcohol at 0.5%. Petroleum products fell by -0.2% over the month. Office machinery and equipment increased by 13.4% over the year and 1.6% over the month. Recovered secondary raw materials rose by 24.7% over the year and 0.4% over the month. The prices for fabricated metal products fell by 0.5% over the year and 0.1% over the month.

The biggest contributions to the increase in input prices over the year were crude oil with an increase of 54.5% and imported metals at 8.6%. Over the month from January to February the main contributors were imported chemicals and imported metals at 0.9%, the highest since the 9.4% of September 2008, and home food materials at 0.7% offset by falls in the prices of fuel at -2.6% and crude oil at -0.7%. Office machinery and computer parts increased by 23.9% over the year and 2.8% over the month, imported non-ferrous metals increased by 21.7% over the year but fell -0.4% over the month. There were big falls in the prices of electricity and gas at -10.1% and -33.1% respectively and -18.5% overall.

Factory Gate Prices Increase Again

Output prices rose overall by 3.8% in the year to January, compared with a 3.5% rise in the year to December. The index rose 0.4% between December and January mainly due to price rises in petrol products, tobacco and alcohol products and other manufactured products. Input prices for materials and fuels rose 8.4% in the year to January compared with 7.4% in the year to December and 2% between December 2009 and January 2010 compared with 0.6% between November and December 2009.

Over the year to January output prices increased in all catogories except textiles and clothing which decreased by o.2% The biggest increase was in petroleum products with 20.6%. Electrical and optical went up 4.3%, tobacco and alcohol by 3.7% and both transport and other products by 3.3%. The changes over the month to January saw decreases in the output prices of food at 0.1%, textiles and clothing at 1.2% and metal products at 0.1%. Petroleum products went up by 1.7% which was the biggest increase over the month.

Input prices were generally up with a 70.6% rise in the price of crude oil. Impiorted metals went up by 7.1%. A number of categories prices went down in January including fuel at 16.1%. Imported food materials prices decreased by 2.8%, home food materials prices decreased by 5.7% and other home produced materials by 0.7%. Over the month the price of crude oil increased by 5.3% and fuel by 3.1%. Home food products materials prices increased by 0.4% and imported food materials products by 0.3%.

Output And Input Prices Up In December

Output prices rose overall by 3.5% in the year to December, compared with a 2.9% rise in the year to November. The index rose 0.5% between November and December mainly due to price rises in food, electrical products, transport equipment and other manufactured products. Input prices for materials and fuels rose 6.9% in the year to December compared with 4% in the year to November and 0.1% between November and December 2009 comapred with a fall of 2.6% between November and December 2008.

Output prices rose across the board the most significant rise being in petroleum products at 16%. Other significant increases over the year were in transport at 4.2% and electrical and optical at 3.8%. In the month to December the changes were included increases in transport at 1.2%, electrical and optical at 1.1% and other products at 1.2%. There was a decrease of 0.2% in tobacco and alcohol.

Details of input price changes over the year to December show a 65.9% increase in crude oil prices, and a decrease of 18.7% in fuel prices. Imported metals went up by 5.8% and other imported materials by 4.3%. Other significant downward price changes were in home food materials by 5.6% and imported food materials by 2%. In the month to December the significant price changes were a downward change of 2.2% in crude oil prices. other changes included a 1.1% increase in the price of fuels, 1.2% increase in imported metals and 1% in the price of imported food materials.

Petroleum Prices Push Up Producer Prices

The producer prices statistics for November show that input prices for home sales of manufactured goods went up 2.9% in the year to November (1.9% in October) and 0.2% in the month between October and November (0.9% same period 2008). Input prices for the manufacturing industry went up 4% over the year to November (0.4% in October) and 0.1% in the month between October and November (3.3% same period 2008).

The main contributions to the changes in the output price index over the year were petroleum products, tobacco and alcohol. Over the last month to November the main contributions were from petroleum products and food. The biggest contribution to the change in the input prices was from crude oil with a 30.3% rise in price, the largest annual rise since the 45.4% rise in September 2008, and imported parts ands equipment. Crude oil and fuel were the main contributors to the change in the index over the month.

Trade In Goods Is Down, Services Unchanged

The UK trade deficit in the value of goods and services grew from £3.1bn in September to £3.2bn in October. The difference was in value of the trade in goods where the deficit increased from £6.9bn in September to £7.1bn in October. The trade surplus in services was unchanged over the month at £3.9bn. Export and import prices both rose by 1.6%.

The volume of exports was up 3.8% and imports by 4.3% inOctober compared with September. There were big increases in the export by value of oil, cars, intermediate goods and semi-manufactured goods other than chemicals between October and September. Imports of chemicals, consumer goods and capital goods also increased significantly in terms of commodity value during the month. The value of exports of chemicals, cars, semi-manufactured goods and intermediate goods has also significantly increased as has the imports of cars, chemicals, intermediate goods and consumer goods over the year.

Trade in goods with EU countries showed a deficit of £3.6bn, up £0.4bn as exports rose by £0.4bn to £11.3bn and imports rose £0.8bn to £14.9bn. The deficit in trade with non-EU countries narrowed to £3.5bn from £3.8bn in September. Within the G7 countries, imports from the US went up £0.4bn and imports from Norway fell £0.2bn. There were no export movements over £0.2bn.

As the prices for both imports and exports were unchanged in October, the terms of trade remained the same as September. Over the quarter import prices increased by 1.6% and export prices by 2% giving an increase in the terms of trade. The balance on trade in oil was in deficit by £0.1bn from £0.5bn in September.

The surplus on trade in services as unchanged in October from September at £3.9bn. Exports rose to £12.9bn and imports rose to £9bn. Over the quarter the surplus widenend to £12bn from £11.4bn.

Fall In Prices At Factory Gate In August

The 'factory gate' or output producer prices annual inflation for all manufactured goods for consumer sales fell 0.4% in August. These are the prices manufacturers sell their goods. Input price annual inflation, the price at which they buy their materials, fell 7.5% in August compared with 12.2% in July. Month on month output prices actually rose 0.2% in August and input prices rose 2.2%. The output index that leaves out the more volatile sectors like food, beverages, tobacco and petrol rose 0.7%. These index numbers reflect an increase in the price of crude oil and other imported materials of 1.6%.

Producer Price Inflation Down 1.2%

The output price index for home sales of manufactured products was down 1.2% in the year to June according to the ONS Producer Price Index bulletin. The ‘factory gate’ index reflects a fall in chemical prices of 3.0% between May and June partly offset by increases in petroleum products of 3.9%. Leaving out ‘volatile’ sectors, like food, beverages, tobacco and petroleum, the ‘narrow’ index increased 0.1%. Petroleum products actually fell by 19.9% over the year. Input prices for materials and fuels bought by the manufacturing industry fell 11.0% in the year to June but rose 1.5% in the month from May to June. The ‘narrow’ index fell 2.6%. The rise in the input index reflects mainly the change in the price of crude oil rising by 14.3% in May but falling by 36.8% over the year to June. The price of imports fell 0.3% between May and June.

Inputs And Outputs Both Down

According to last week's PPI figures from the ONS output prices were down 0.3% in the year to May but rose 0.4% in the month to May. It compares with a rise of 1.3% in the year to April. The rise in petrol prices is partly the cause. Input prices fell by 9.4% in the year but rose 0.4% in the month to May. It is partly a result of a rise in the price of crude oil and partly offset by a fall in fuel prices. The output PPI was affected by Budget measures increasing petrol, alcohol and tobacco taxes which are estimated to have added 0.1% in May if passed on in full.

Output Prices Up, Input Prices Down

Output prices were up 1.2% in year-on-year figures to April compared with 2.0% on year to March. Monthly figures were up 0.6% March to April reflecting the rise in petroleum products originally announced in the 2007 Budget and additional increases in excise duty. The excise duty on products like petrol, tobacco and alcoholic drinks may have added 0.2% to the overall output index. Excluding duty the annual index was up 0.9% and the monthly 0.4%. The output prices index excluding food and beverages rose 2.4% in year to April and the monthly index was up by 0.4%.

Input prices fell by 5.0% in the year to April and by 1.0% in the month March to April compared to 3.9% last year. It is the largest annual decrease since a fall of 5.3% in 2002. The fall reflects an 8.2% fall in the price of fuel in the month offset by a rise in crude oil prices. The prices of imported materials fell 1.0% in the month. Input prices for manufacturing excluding food and beverages rose by 3.3% in the year compared with 7.6% in year to March but fell 0.7% in the month.