ONS figures published on 19 August 2026 show annual growth in manufacturers’ input prices fell to 4.9 per cent in July 2026, down sharply from a revised 7.4 per cent in June, while factory gate prices also eased.
The cost of raw materials and fuels bought by UK manufacturers rose by 4.9 per cent in the year to July 2026, the Office for National Statistics reported — down from a revised 7.4 per cent annual rise in June 2026. That’s a drop of 2.5 percentage points in a single month. Factory gate prices, which measure what manufacturers charge when goods leave the production line, rose by 3.1 per cent over the same period, compared with 3.5 per cent in June 2026.
The figures show a clear cooling in upstream cost pressures across UK industry. Both input and output price growth rates have slowed, suggesting that the sharp commodity and energy-driven inflation that squeezed producers hard through 2021 and 2022 continues to unwind — though prices are still rising, not falling.
For Kent, the numbers matter. Manufacturers in food processing, chemicals, engineering and construction products all feel input price changes directly in their operating margins. A slowdown to 4.9 per cent annual input price growth may reduce pressure on those firms to push further price increases through to customers — including Kent retailers, construction contractors and local councils procuring goods and services. Infrastructure and housing projects across the county that depend on steel, timber, cement and fuel could also see some budget relief, though any benefit depends on individual contract structures and how quickly market prices feed through.
Kent County Council, Medway Council and other district authorities monitor ONS producer price data when planning procurement and budgets. The Kent Invicta Chamber of Commerce and the South East Local Enterprise Partnership use the same national figures to advise local firms on pricing and cost management — though no separate regional producer price data for Kent is published by ONS.
Still, producers remain in a high-cost environment. Cumulative price rises since 2021 mean many manufacturers have already passed significant increases on to customers. The easing in annual growth rates is a shift in direction, not a reversal.
Source: @ONS