FX.co ★ UK PPI Output Flatlines in January, Halting Decline in Factory-Gate Prices

United Kingdom producer price inflation at the factory gate stabilized at the start of the year, with PPI Output registering 0.0% month-over-month in January 2026, according to data updated on 18 February 2026. This marks a shift from December 2025, when output prices fell by 0.1% compared with the previous month.

On a month-over-month basis, the latest reading indicates that average prices charged by UK producers for their goods left the mild deflationary territory seen at the end of 2025 and moved to a flat profile. The current “actual” figure reflects the change in January relative to December, while the “previous” indicator captures the change in December compared with November.

The move from -0.1% to 0.0% suggests that downward pressure on factory-gate prices has eased, potentially signaling a more stable cost environment at the producer level as 2026 gets under way. Investors and policymakers are likely to watch subsequent PPI data closely for signs of whether this stabilization persists or gives way to renewed price pressures or further declines.