[UK Economy] London, January 29th Electric – UK producer price inflation (PPI) eased in the year to December 2025, according to the latest data released by the Office for National Statistics (ONS), as input prices fell month-on-month and the pace of annual gains slowed. The data suggests a gradual cooling of price pressures in the UK manufacturing sector, though food prices continued to support factory gate inflation.

Key figures show that producer input prices rose by 0.8% in the year to December 2025, down from a 1.1% increase in November. On a monthly basis, input prices fell by 0.2% in December, reversing a revised 0.5% rise in the previous month. The largest downward contribution to annual input inflation came from crude oil inputs, whose prices dropped 15.1% over the past year, offsetting gains in other input categories.

Producer output (factory gate) prices rose by 3.4% annually in December, unchanged from November’s rate, while monthly output prices remained flat, down from a 0.1% rise in November. Food products were the biggest driver of annual output inflation, with prices increasing by 4.3% over the year, reflecting ongoing cost pressures in the food manufacturing sector.

Looking at the full fourth quarter of 2025 (October to December), services producer price inflation (SPPI) remained stable, with quarterly and annual rates consistent with previous periods. The ONS data also shows that PPI trends have been gradually moderating since mid-2025, with input prices swinging from deflation earlier in the year to modest inflation. Analysts noted that the easing in PPI could provide some relief to the Bank of England, which has been focused on taming inflation while supporting economic growth.