UK factory gate inflation slowed to 3.1% year-on-year in July 2026 from 3.5% in June, undershooting expectations of 3.2% and marking the weakest annual increase in four months. The rise in output prices was still broad-based, with eight of 10 product groups contributing to the annual gain, led by coke and refined petroleum products as higher energy costs continued to feed through, even though that category's price growth cooled to 30.1% from 41.3%. Elsewhere, inflation for other manufactured products accelerated slightly to 4.6% from 4.5%, while price growth for basic metals, fabricated metal products, and machinery slowed to 5.0% from 5.2%. Motor vehicles and other transport equipment exerted the largest downward pull on the annual rate, with prices down 1.6%, followed by food products, where prices fell 0.8%. On the month, factory gate prices rose 0.2% after a revised 0.1% decline in June, in line with market forecasts.