GBP PPI Output (Y/Y)

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GBP Producer Index Output is a monthly survey which measures the fluctuations in the prices of goods produced by UK manufacturers. Due to the figure generally matching the prices of goods immediately post their leaving of the factory it is also known as "Factory Gate Price". While increased manufacturing prices tend to lead to higher retail prices for consumers, it is also probable that increased output prices are the result of manufacturers charging a higher premium in response to higher demand for their products. Thus, market consumption trends should be viewed with Output PPI in order to avoid the possible misinterpretation of data. There is also a Core Output PPI which does not include unstable items such as food and energy. The Core Output PPI is usually the preferred inflation measurement as it excludes the short-term price items which may lead to distortion in inflationary data.