Partner Article

Producer prices fall 0.4% in June

Producer prices in the UK have fallen in the UK by 0.4% in June from May, representing the largest monthly drop since November 2008.

The Office of National Statistics found that prices rose by 2.3% on an annual basis, which represented the lowest rate since October 2009.

Producer price inflation has been slowing rapidly since September last year, when it stood at more than 6%.

Year-on-year, input prices also fell by 2.3%. The overall fall in producer prices was attributed to lower petrol, clothing and textile costs, and will be good news for consumers, as it will feed through to lower high street prices.

Chris Williamson at Markit said: “A key driver of lower prices has been the sharp fall in oil prices since their peak earlier this year.

The Consumer Price Index, which is used to measure UK inflation, stands at 2.8%, down from 5.2% in September 2011.

This was posted in Bdaily's Members' News section by Ruth Mitchell .