FX.co ★ UK Producer Inflation Steady at 3.4%

In December 2025, the factory gate prices for goods manufactured in the UK experienced a 3.4% increase on a year-on-year basis, maintaining the same growth rate as observed in November. Each of the ten product categories exerted upward pressure on the annual rate. Notably, food products contributed the most significant impact, with prices rising by 4.3%, a slight acceleration from the 4.2% increase in November. This was partially due to elevated costs for processed and preserved meats. Additionally, inflation gathered pace in the textiles sector, climbing to 4.9% from 4.8%, while showing a rebound in both the paper and paper products sector, improving to 0.2% from a previous decline of -0.2%, and in coke and refined petroleum products, which rose to 0.1% from -0.6%. Conversely, the price growth for motor vehicles and other transport equipment slowed to 6.3%, down from 7.2%, thus exerting a downward influence on the overall annual rate. Similarly, the increase in costs for basic metals decelerated to 3.6% from 4.0% and for chemical and pharmaceutical products to 1.8% from 2.1%. On a monthly comparison, producer output prices remained unchanged, contrary to market expectations of a 0.1% rise.