Factory gate prices of goods produced by the UK manufacturers increased 2.2% year-on-year in February of 2019, following a 2.1% rise in January and in line with market expectations. Cost advanced faster for coke & refined petroleum products, including duty (2.7% from 0.3% in January); basic metals (1.3% from 1.1%); other non-metallic mineral products (2.7% from 2.6%); computer, electronic & optical products (2.9% from 1.6%); machinery & equipment n.e.c. (1.4% from 1.2%); wearing apparel (2.9% from 2.7%) and printing & recording services (0.5% from 0.4%). On the other hand, prices slowed for chemicals & chemical products (4.2% from 6.4%); rubber & plastic products (1.8% from 2%) and wood & products of wood and cork (5.8% from 5.9%). Prices for materials and fuels paid by the UK manufacturers for processing (input prices) rose at a faster 3.7%, up from a downwardly revised 2.6% gain in January. On a monthly basis, output prices went up 0.1%, after showing no growth 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 1.70 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.