FX.co ★ UK Factory-Gate Inflation Cools Further as PPI Output Eases to 2.5% in January

Producer price inflation at the factory gate in the United Kingdom slowed in January 2026, with the PPI Output indicator easing to 2.5% year-over-year. The figure, updated on 18 February 2026, marks a step down from December 2025’s 3.1% annual rate, signaling a further moderation in price pressures at the producer level.

On a year-over-year basis, the latest reading compares the change in output prices in January 2026 with the same month a year earlier, while December’s 3.1% reflected the change versus December a year before. The continued decline suggests that cost pressures faced by UK producers are easing, which could, over time, feed through into softer consumer price inflation and provide some relief to businesses and households.

Investors and policymakers are likely to view the January print as a tentative sign that pipeline inflation is losing momentum. While a single data point does not set a trend, the step down from December’s rate adds to evidence that the peak in producer price growth may be behind the UK economy.