FX.co ★ UK Factory-Gate Prices Turn Negative in February, Signalling Fresh Disinflation Pressure

United Kingdom producer prices moved back into negative territory in February, adding to signs of easing pipeline inflation. Month‑on‑month PPI Output fell by 0.5% in February 2026, compared with a flat reading of 0.0% in January 2026, according to data updated on 25 March 2026.

The shift from zero growth to a 0.5% decline in factory-gate prices suggests that cost pressures at the production stage are softening. On a month‑over‑month basis, February’s reading shows that output prices were lower than in January, whereas January’s unchanged figure had already marked a pause after earlier gains.

Given that the indicator measures price changes at the point of production, the latest move could feed through to consumer prices in the coming months, potentially easing headline inflation. The data underline a cooling in upstream price dynamics as the UK progresses through early 2026.