The agricultural price index for July 2014 for all outputs fell by 4.5% and for all inputs by 0.6%. The fall in the monthly price index for outputs was due mainly to the index for crops falling by 6.2% while the index for animals and animal products remained the same.
The prices are lower than the same time last year with the prices for all outputs down 9.3% and the prices for all inputs down 4.6%.
The producer price index for August 2014 published by the ONS fell for the tenth consecutive month. The output index fell by 0.3% over the year to August compared with 0.1% to July. Factory gate prices fell by 0.1% between July and August 2014. Core factory gate prices (excl. more volatile sectors) increased by 0.9% in year to August compared with 0.8% to July.
Input prices for materials and fuels for processing fell by 7.2% to August compared with 7.5% in year to July. Total input prices fell by 0.6% between July and August compared with 1.7% between June and July.
The index for factory gate prices for goods purchased by UK manufacturers rose by 0.2% in the year to June compared with a 0.5% rise to May. Input prices continue to fall. The monthly comparison shows that factory gate prices fell between May and June by 0.2% compared with 0.1% between April and May. Materials and fuels prices fell by 4.4% over the year to June compared with a fall of 3.8% to May. Between May and June input prices fell by 0.8% compared with an increase of 0.3% between April and May.
The overall agricultural output price index increased by 2.3% in November, the first time it has risen since May 2013. Even though the API output price index rose this November from 118.1 to 120.7 it is still 2.4% lower than November last year. The API for all inputs fell by 0.2% from 112.9 to 112.7 and is 2.1% lower than last year.
The continued increase in milk prices was one of the main contributors to the rise in output prices. Both milk and milk products were still in global demand for the sixth month in a row. Prices are up 15% on last year. Cattle prices are continuing to fall after the high prices seen in the summer.
Input prices haven't changed much. Fertiliser prices are 18% lower than last year but expected shipments of straight nitrogen fertiliser from North Africa were delayed due to regional problems resulting in a slight rise in price.
Farm gate prices fell by 6.2% in July but they remain 4.9% above last year's prices. Input prices also fell by 1.1% in July but they are also above last year's prices by 2.9%.
Output prices fell across the board in July except for forage crops. Cereals fell 8.3% due to a fall in demand as traders expect global production to rise, but prices are still 0.4% higher than last year. Global supply is also keeping the price of oilseed rape down. OSR prices fell 13% in July and are 11% down on last year.
Potato prices fell 46% on the month due to early potato prices which fell 8% as the season ended. Vegetables fell 13% and are 11% down on last year. Cauliflowers fell 57%. Increased supply, warm weather and low demand combined to bring the prices down.
Livestock prices were better as animal and animal products prices increased 0.2% on the month and 11% on the year. The rise was mainly due to a 1.9% increase in the price of milk which is 19% higher than last year.
Feed prices have seen a gradual fall of 2.4% over the last few months but they are still 12% above this time last year. Feed cereals saw the biggest fall in price with an 8.6% fall.
Factory gate prices increased by 1.6% in the year to August according to a bulletin from the ONS on the Producer Prices Index. This compares to a 2.1% rise in July. In the month between July and August factory gate prices increased 0.1% compared with 0.2% in the previous month. Core prices (PPI excluding volatile indices) rose 1% down from 1.1% last month.
Input prices increased by 2.8% in the year to August compared with 5.1% in the Year to July. The core input price index rose by 3.1% compared with 3.9% to July. Imported materials rose 2.1 down from 4.5%. Between July and August total input prices fell 0.2% compared with an increase of 1.2% between June and July. The core price index fell 2.6% from 0.% between June and July.
The output price for goods bought by UK manufacturers increased by 2%. Factory gate prices rose 0.1% between May and June 2013. Core factory gate prices increased by 0.1%. The overall price of materials bought by UK manufacturers rose 4.2%. Total input prices increased 0.2% between May and June 2013.
The latest producer price index (PPI) statistics published by the ONS show that the output price index for home sales of manufactured products went up by 2.2% in November compared with November 2011. It was 2.6% in October 2012. The total input price index for November was 0.3% down on the same month in 2011. It was also 0.3% in October.
The monthly comparison shows that the output price index was 0.2% down between October and November and the total input price index went up 0.1%. Both the input and output indices remained unchanged compared with the month between September and October.
The Producer Prices Index (PPI) measures the price changes of goods bought and sold by British manufacturers and provides a key measure of inflation along with the CPI and RPI. Output prices are often called 'factory gate' prices and measure the price changes for goods manufactured by UK manufacturers. The input price index measures the price changes for materials and fuels bought by British manufacturers for producing goods and the normal day to day running of the business.
