FX.co ★ UK Core PPI Output Eases Slightly to 2.7% in August, Signalling Mild Producer Price Disinflation

Core Producer Price Index (PPI) output in the United Kingdom edged down to 2.7% year-over-year in August 2026, from 2.8% in July 2026, according to the latest data updated on 16 September 2026. The indicator tracks the change in prices set by producers for their output, excluding volatile components, and compares each month’s reading with the same month a year earlier.

The marginal decline suggests a modest easing in underlying producer price pressures. While the change from July to August is small, the continued stability near the mid-2% range indicates that pipeline cost pressures remain contained, potentially reducing the risk of sharp pass-through effects to consumer prices in the near term.

On a year-over-year comparison basis, the “previous” figure reflects the change in July 2026 versus July 2025, while the “actual” August reading reflects the change versus August 2025. The slight deceleration from 2.8% to 2.7% may be monitored by markets and policymakers as they evaluate the trajectory of producer-side inflation heading into the final quarter of the year.