Britain's producer price inflation increases to two-year high in June

British producer output price inflation rose to a two-year high of |.9 per cent in June, up from 1.3 per cent in May, according to preliminary official data which adds to signs of inflationary pressures facing the British economy.

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Britain’s Office for National Statistics suspended the publication of PPI data in March after discovering calculation errors dating back to 2020. Wednesday's figures represent interim data before regular publication resumes in October.

In July, the ONS said initial analysis showed that producer price inflation in previous years had been higher than originally calculated.

Wednesday's figures showed further upward revisions, with a previously reported O.5 per cent producer output price inflation rate for the year to April revised up to 0,7 per cent. However, the ONS said the overall changes were in line with its previous expectations.

Meanwhile a downturn in British retail sales entered its lIth consecutive month in August and shops raised their prices by the most since late 2023, a Confederation of British Industry (CBI) survey showed on Wednesday.

The CBI's monthly gauge of how retail sales compared with a year earlier was little changed at -32 from July's -34 but better than a dip to -46 in June. The outlook for September improved to -I6.

"Weak demand and higher labour costs continue to put pressure on margins, dampening sentiment across the retail and wider distribution sector," Martin Sartorius, principal economist at the CBI said.