FX.co ★ UK's Producer Prices Slow in December Increasing Economic Optimism

In December 2025, the United Kingdom experienced a notable decline in its Producer Price Index (PPI) Input, marking a potential shift in the economic landscape. The PPI Input, a crucial measure of the average change over time in the selling prices received by domestic producers for their output, decreased to 0.8% from 1.1% recorded in November 2025. This data, updated on January 21, 2026, suggests a cooling in input cost pressures for UK producers.

When compared year-over-year, December's 0.8% marks a relief from higher input costs experienced throughout 2025, offering a glimmer of hope to businesses grappling with previous inflationary pressures. The PPI's continued deceleration aligns with economic efforts to stabilize price increases and boost business and consumer confidence.

As input costs ease, economic stakeholders remain watchful of further trends that could signal ongoing improvement in economic conditions across the UK. The decrease in PPI Input comes after months of fiscal and monetary interventions aimed at curbing inflation while fostering sustainable economic growth. This latest data could prompt renewed expectations of steadiness within the UK's economic environment as 2026 progresses.