FX.co ★ UK Factory Gate Pressures Build as PPI Input Swings Back to Inflation in February

Producer price inflation at the factory gate turned positive in the United Kingdom in February, underscoring a renewed build‑up of cost pressures in the industrial pipeline. According to data updated on 25 March 2026, the UK’s PPI Input index rose 0.5% year‑over‑year in February 2026, a notable shift from the 0.2% annual decline recorded in January 2026.

The figures, which compare input costs in February to the same month a year earlier, mark a clear reversal from the deflationary trend seen at the start of the year. In January, producers were benefiting from slightly cheaper input costs on an annual basis; by February, those costs were rising again on a yearly comparison.

The move from -0.2% to 0.5% on a year‑over‑year basis suggests that upstream price pressures are re‑emerging after a brief period of relief. While the scale of the increase remains modest, the direction of travel will be closely watched by markets and policymakers for signs that producer‑level inflation could filter through to consumer prices in the months ahead.