UK Producer Price Inflation Rises Sharply in March 2026, Driven by Energy Costs

Note: This section contains information in English only.
Source: Dukascopy Bank SA
According to the Office for National Statistics (ONS), producer price inflation in the UK picked up sharply in March 2026, with input costs rising much faster than in previous months. The prices manufacturers pay for materials and fuels increased by 5.4% over the year, a significant jump from the 0.7% rise recorded in February. On a monthly basis, input prices surged by 4.4%. This sharp increase was driven primarily by crude oil, which saw an extraordinary monthly rise of 58.8% and an annual increase of 58.3%. However, this was partly offset by a 4.8% fall in fuel input prices over the year. Output prices, often referred to as factory gate prices, also showed stronger growth. These rose by 2.6% in the year to March, up from 1.8% in February, while increasing by 0.9% compared with the previous month. The most significant upward pressure came from coke and refined petroleum products, which recorded a monthly increase of 20.6% and an annual rise of 14.6%.



Import prices followed a similar pattern, with the Import Price Index rising by 4.2% over the year to March, compared with a 0.6% increase in February. On a monthly basis, import prices rose by 3.6%. These increases were largely driven by higher costs for crude petroleum imports from non-EU countries. In the services sector, prices charged to UK-based customers rose by 3.0% in the first quarter of 2026, up from 2.8% in the final quarter of 2025. On a quarterly basis, service prices increased by 0.8%. The biggest contribution to this annual rise came from professional, scientific and technical services, where prices grew by 3.5% over the year.
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