UK Raw Material Costs Up 6.1 Per Cent in Year to August 2026

Official ONS figures published on 16 September 2026 show annual input price inflation accelerated to 6.1 per cent in August, while factory gate prices rose 3.7 per cent year-on-year.

Raw material and fuel costs for UK manufacturers rose 6.1 per cent in the year to August 2026, the Office for National Statistics reported on 16 September, up from a revised 5.8 per cent in the year to July. Factory gate prices — what manufacturers charge when goods leave the production line — climbed 3.7 per cent over the same period, compared with a revised 3.3 per cent in July.

Both figures picked up speed month-on-month, and the July rates were themselves revised upward in this latest release — standard ONS practice as more complete data comes in. The gap between input and output inflation, 6.1 per cent versus 3.7 per cent, suggests manufacturers are absorbing a portion of rising costs rather than passing all of them on at the factory gate. That squeeze on margins can only last so long.

For Kent’s manufacturing base — which spans food processing, chemicals, engineering and construction materials — the national trend points to higher costs for raw materials and energy. Local firms selling into UK supply chains may face pressure to lift their own prices to protect margins, which can ripple through to the businesses and households that buy from them. Construction projects across the county, from infrastructure schemes to housing developments, could also see higher tender prices if steel, cement and aggregate costs continue on this trajectory, according to economic inference from the ONS data.

Producer price statistics feed directly into the Bank of England’s inflation monitoring and inform government fiscal planning. Kent County Council and district councils including Medway, Canterbury and Ashford may draw on this data when assessing budgets and supporting local businesses.