Producer Price Inflation UK September 2022 Including Services 20% Up

19th October 2022

Producer input prices rose by 20.0% in the year to September 2022, down from 20.9% in the year to August 2022, its third consecutive monthly fall.

Producer output (factory gate) prices rose by 15.9% in the year to September 2022, down from 16.4% in the year to August 2022.

Crude oil and petroleum products provided the largest downward contributions to the change in the annual rates of input and output inflation, respectively.

Monthly input prices increased by 0.4%, and output prices increased by 0.2% in September 2022.

Services producer prices rose by 6.6% in the year to Quarter 3 (July to Sept) 2022, up from 5.4% in the year to Quarter 2 (Apr to June) 2022; this is the highest the rate has been since records began in Quarter 1 (Jan to Mar) 1999.

Information and communication services provided the largest upward contribution to the annual rate of the Services Producer Price Index (SPPI).

Producer prices annual growth rates
The headline input and output producer price series have been extended back to January 1984 and January 1957, respectively, using previously published data, with annual growth rates now starting in January 1985 and January 1958 (Figure 1). More information can be found in Section 8.

The annual rate of input producer price index (PPI) has now been positive for 22 consecutive months. However, it has slowed for the third consecutive month and is down 4.1 percentage points from the record high of 24.1% in June 2022. The annual rate of output PPI has now been positive for 21 consecutive months, but has slowed for the second consecutive month.

The largest upward contribution to the annual input inflation rate came from metals and non-metallic minerals, which contributed 4.03 percentage points. This product group had an annual price increase of 18.9% in September 2022, which is up from 18.7% in August 2022. The second largest contributor to the annual rate came from chemicals, which contributed 3.53 percentage points (Figure 3) and had an annual price increase of 20.1% in September 2022, up from 19.8% in August 2022.

In the year to September 2022, the annual rate of input inflation was 20.0%; this is down 0.9 percentage points from 20.9% in August 2022.

Of the 10 product groups, four showed downward contributions to the change in the annual rate, with crude oil providing the largest, at 0.68 percentage points (Figure 4). Crude oil saw a monthly decrease of 4.5% in price between August and September 2022, compared with an increase of 3.5% in the same period last year.

Food products provided the largest upward contribution to the output annual rate at 4.21 percentage points (Figure 5) and had an annual price increase of 14.8% in September 2022 (Table 5), which is up from 14.5% in August 2022. This is highest the annual rate has been since records began in January 1997, and was mainly driven by preserved meat and meat products for the domestic market.

Services Producer Price Index (SPPI)
The annual rate of inflation for the SPPI was 6.6% in Quarter 3 (July to Sept) 2022, up from 5.4% in Quarter 2 (Apr to June) 2022 (Figure 7). This is the highest the rate has ever been since records began in Quarter 1 (Jan to Mar) 1999.

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