Factory gate prices of goods produced by the UK manufacturers increased 2.4% year-on-year in March of 2019, the same as in the previous month and above market expectations of 2.1%. Inflation was steady for food, beverages & tobacco (at 1.5%); textiles (at 1.1%) and basic pharmaceutical products & preparations (at 1.9%). At the same time, prices rose faster for coke & refined petroleum products (6.3% from 2.9%); basic metals (0.9% from 0.7%); computer, electronic & optical products (3.1% from 2.8%) and electrical equipment (0.4% from 0.3%) while cost slowed for chemical & chemical products (3.4% from 4.1%); paper & paper products (3.2% from 3.8%); wood & products of wood & cork (4.3% from 5.4%); machinery & equipment (1.3% from 1.4%) and rubber & plastic (1.7% from 1.8%). On a monthly basis, output prices went up 0.3%, the same as in the prior month. Producer Prices Change in the United Kingdom averaged 5.05 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 1.60 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 2.10 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.