Factory gate prices of goods produced by the UK manufacturers increased 1.8% from a year earlier in July 2019, up from a 1.6% rise in the prior month and slightly above market expectations of a 1.8% gain. Prices rose mostly for computer, electrical and optical products (3.3% vs 2.6% in June) and transport equipment (3%vs 2%). Meanwhile, cost decreased for petroleum products (-0.6 percent vs -2.4%) and chemicals and pharmaceuticals (-0.4 percent vs 0.2%). Prices for materials and fuels paid by the UK manufacturers for processing (input prices) rose 1.3%, following a revised 0.3% increase in the previous month, largely driven by fuels (10.2%). On a monthly basis, output prices went up 0.3%, after dropping 0.1% in the previous month and beating market estimates of a 0.1% gain. Producer Prices Change in the United Kingdom averaged 5.03 percent from 1964 until 2019, reaching an all time high of 27.80 percent in January of 1975 and a record low of -1.90 percent in August of 2015.
Producer Prices Change in the United Kingdom is expected to be 1.80 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in the United Kingdom to stand at 2.00 in 12 months time. In the long-term, the United Kingdom Producer Prices Change is projected to trend around 2.50 percent in 2020, according to our econometric models.