The headline rate of inflation for goods coming out of factories in the United Kingdom in January came in at 0.2% month over month, the country's Office for National Statistics (ONS) revealed on Wednesday. Year-on-year, the figure dropped 0.6%.
Namely, the decrease in the output inflation rate was linked to the falling prices of chemicals and refined petroleum, which experienced declines of 12.5% and 9.4%, respectively. In January, monthly input producer prices decreased by 0.8%, with the annual input inflation rate dropping by 3.3%, compared to December's figure of 2.1%, marking its lowest level since May 2020.
The largest downward contributors to the annual input producer prices were from inputs of chemicals and crude oil which plunged by 8.5% and 11.4% respectively in the year to January 2024.
