Factory gate prices of goods produced by the UK manufacturers increased 2.1 percent year-on-year in April of 2019, easing from a downwardly revised 2.2 percent rise in the previous month and below market expectations of 2.3 percent. It is the lowest producer inflation since January. Cost slowed for coke & refined petroleum products, including duty (2.8 percent from 4.4 percent in March); chemicals & chemical products (1.2 percent from 3.1 percent); food, beverages & tobacco (1.4 percent from 1.5 percent in March); wearing apparel (2.6 percent from 2.9 percent); wood and products of wood and cork, except furniture (3.3 percent from 4.3 percent); paper and paper products (3 percent from 3.2 percent) and furniture (1.7 percent from 1.9 percent). Prices for materials and fuels paid by the UK manufacturers for processing (input prices) rose at a faster 3.8%, up from a downwardly revised 3.2% gain in March. On a monthly basis, output prices went up 0.3 percent. 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.