Industrial Prices Fall For Tenth Month

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.

Industrial Input Prices Continue To Fall

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.

Factory Gate Prices Up 1.6%

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.

Factory Gate Prices Up 0.1%

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.

Factory Gate Prices Up 2.2%

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.

Factory Gate Prices Stable In October

The annual output price index for home sales of manufactured products rose by 2.5% the same as September 2012. The index excluding food, beverages and tobacco and petroleum was 1.4% compared with 1.2% in the previous three months. The total input price index increased 0.1% compared with a fall of 1% in September.

Producer Output Price Rises In September

The output prices of home sales of manufactured products increased by 2.5% in the year to September 2012 compared with an increase of 2.3% last month according to a statistical bulleting from the ONS. Between August and September the index for output rose by 0.5%, the same as between July and August. Input prices however fell b y 1.2% in the year to September 2012 compared with a fall of 1.1% last month. Input prices also fell between August and September by 0.2% compared with a rise of 1.9% between July and August. The largest changes in output prices were in tobacco and alcohol with an 8.7% increase, petroleum products 3.4%, computer, electrical and optical with 2.9% and other manufactured goods with a 2.8% change. The largest changes in input price were in imported metals with a -12.8% percentage change and home food materials with a change of 10.1%. Fuel increased by 7.4% and crude oil fell by 2.3%. Imported chemicals and imported parts and equipment also fell by 3.6% and 3% respectively.

Producer Prices Increase Again In February

The output price for home sales of manufactured goods increased by 4.1% in the year to February 2012. The increase excluding the more volatile sectors like food and beverages was 3%. The input price index also increased in the year by 7.3%. The monthly index of sales between January and February increased by 0.6%.

Producer Prices Rise By 5.4%

The output price for home sales of manufactured products rose 5.4 per cent in the year to November 2011 according to the latest statistical bulletin on producer prices from the ONS. The output price index excluding food, beverages, tobacco and petroleum rose 3.2 per cent.

The total input price index rose 13.4 per cent, the lowest annual rate since December 2010, when the index rose 13.1 per cent. The total input price index excluding food, beverages and tobacco rose 10% over the year.

The output index for home sales of manufactured products rose 0.2 per cent and the total input price index rose 0.1 per cent between October and November. There were price increases in petrol products, tobacco and alcohol and chemicals and pharmaceuticals.

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.

Factory Gate Prices Up 5.7%

The producer prices index from the ONS tells us that factory gate prices for home sales of manufactured goods increased 5.7% in the year June compared with 5.4% in May. The price excluding the more volatile sectors such as food, beverages, tobacco and petroleum increased by 3.2%. The output price excluding excise duty increased by 5.8%.

Over ther month between May and June the output price index rose by 0.1%. The increase mainly reflects increases in the prices of food and other manufatures.

European IPP Increase

The index of producer prices of all products sold on domestic markets of the various countries of the EU (excluding imports) rose by 0.9% in the euro area and 1% in the EU27 in April 2011 compared with March 2011. April 2011 compared with April 2010 shows that the annual increase was 6.7% in the euro area and 7.8% in the EU27.

The monthly changes included an increase in energy prices of 2% in the uero area and 2.2% in the EU27, an increase of 0.4% in both areas in total industry and 0.6% in intermediate goods, 0.2% in durables and 0.1% in capital goods. Non-durable consumer goods rose by 0.5% in the euro area and 0.4% in the EU27. The highest increases at the national level were in Latvia at 4.6% only Sweden reported a decrease (-0.5%) and Malta remained stable.

Total industry prices (excluding energy) increased 4.4% on the annual basis in the euro area and 4.6% in the EU27. Energy prices increased by 13.3% in the euro area and 15.4% in the EU27. Intermediate goods prices increased by 7.3% in both zones. Non-durables rose by 3.4% in the euro area and 3.9% in the EU27. Durables rose by 2% and 1.9% and capital goods by 1.3% and 1.4% respectively. The largest increase nationally was in the UK with an increase in the total index of 13.1%. The smallest was in Malta with 0.9%.

Big Increase In The Price Of Inputs

Output prices in manufacturing increased by 4.8% in the year to January 2011 compared with 4.1% last month. Month on month the output price index rose by 1%. Petrol, food and chemicals were the main items responsible for the increase. Input prices increased by 13.4% over the year to January, the highest increase since 2008, compared with 12.9% last month, excluding the more volatile products the increase was 9.9%. Month on month the total input price index increased by 1.7%.

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.

Increase In European Industrial PPI In March

The monthly industrial producer price index for the euro area went up 0.6% and the EU27 0.7% in March 2010 compared with February 2010. Price rises in the energy sector increased by 1.7% i the euro area and 1.6% in the EU27. Durable consumer goods also rose by 0.1% in the euro area and 0.3% in the EU27. Capital goods were unchanged in the euro area but increased by 0.2% in the EU27. Non-durables fell by 0.1% and remained stable respectively.

The index went up by 0.9% in the euro area and 1.7% in the EU27 in March 2010 compared with March 2009. The total industry index excluding energy 0.1% in the euro area and 0.3% in the EU27. The prices index in the energy sector rose by 2.8% and 5.12% respectively. Intermediate goods rose by 0.8% in both zones. Durables increased by 0.3% in the euro area and 0.5% in the EU27. Non-durables fell by 0.5% and 0.2% respectively. Capital goods fell by 0.5% in the euro area and 0.1% in the EU27.

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%.

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.