Producer prices Index ease in the UK

Seasonally Adjusted Producer Input Prices have dropped 1.2% in august, from July´s 0.9% increase, according to a report recently published by the Office for National Statistics.

Manufacturers will enjoy a lower costs pressure from now on, three times lower than the 0.4% decline expected by the analysts.

This is the first drop in producer prices since May, and the largest since December 2004. According to the statistics office, the reasons of this fall are the lower prices of crude oil, which lowered 2.8% between July and August, imported parts and home produced food.