Mubasher: The UK’s producer price index (PPI), which is a measure for goods leaving the factory gate (output prices), rose by 2.8% year-on-year in October 2017, data released by the country’s Office for National Statistics (ONS) showed on Tuesday.

Despite the year-on-year rise, compared to September, the PPI declined from 3.3%.

“The one-month rate for materials and fuels rose 1.0% in October 2017, which is a 0.8% increase from 0.2% in September 2017, driven by inputs of crude oil, which was up 3.5% on the month.”

Prices for materials and fuels grew 4.6% in October 2017 from the prior-year period, but retreated from 8.1% in September 2017.

“The annual rate of inflation for materials and fuels fell back for the second consecutive month and is 15.3% below its recent peak of 19.9% in January 2017,” the ONS said.

As for the annual rate of inflation for materials and fuels, this declined for the second month in a row and was 15.3% below its January 2017 peak of 19.9%.

The PPI recorded 109.4 in October 2017, its highest level since July 2014 when it reached 109.5. Despite that, the PPI remains below its historic peak of 120.9 in March 2013.

Meanwhile, “core input inflation was 3.2% on the year to October 2017, which is the lowest it has been since June 2016,” the data showed.

Factory gate prices or output prices are the amounts received by UK producers for goods they sell locally.

This “includes the margin that businesses make on goods, in addition to costs such as labour, raw materials and energy, as well as interest on loans, site or building maintenance, or rent,” the ONS said.

By 11:02 am GMT, GBP/USD was down 0.21% to $1.3088, while EUR/GBP increased 0.65% to GBP 0.8954.