New high clothing prices in the UK drive up the production price index

The growth rate of UK industrial product prices in July reached a record high of three years, mainly due to the increase in clothing prices recorded at a high level since 1997.

The office of the National Bureau of Statistics said that the ex-factory price of industrial products rose by 5.9% year-on-year, which was higher than the high of 6.6% in October 2008, but was lower than the forecast of 6% in the market. The production price index rose by 0.2% month-on-month.

Clothing, textiles and leather prices rose 5.2% year-on-year, the highest since January 1997. The staff of the National Bureau of Statistics of the United Kingdom explained that the increase in wool prices led to a significant increase in the prices of clothing, textiles and leather.

The report said that the UK is closely watching the rise in the producer price index because if retailers pass on the cost increase to consumers, it will push up the consumer price index.

In the UK, the year-on-year rate of inflation in June was 4.2%, down from 4.5% in May. The country’s central bank stated that due to the substantial rise in household utility bills, it is expected that the inflation rate will increase to more than 5% this year, and will gradually decline thereafter.