Producer and Retail Price Indices

Published 18 October 17

The Producer Price Index (PPI) measures changes in the prices of goods sold by UK based manufacturers in the form of an index. It is therefore useful as an indicator of movements in factory-gate* prices of manufactured products.

A PPI is available for manufactured liquid milk and cheese and curd.

The Retail Price Index (RPI) measures changes in the prices of goods sold by retailers (or prices paid by consumers). RPIs for fresh milk and cheese are reported here.

Using the PPI together with the Retail Price Indices (RPI) provides some insight into the relative rate of change in prices of goods sold at different parts of the supply chain.

PPI – Dairy

The latest estimates from ONS show a 1.6% decrease in prices received by manufacturers of liquid milk between August and September 2017. Prices are 12.1% higher than a year earlier. 

Factory-gate prices for cheese & curd rose by 0.4% in September. Year on year, cheese & curd prices were 10.6% lower this August than in the same month last year. 

 Percentage change in output prices for manufactured dairy products (2010=100)

 PPI table

Source: Office for National Statistics

PPI graph

*The ONS definition of the ‘factory-gate’ price is “the price of goods sold by UK manufacturers and is the actual cost of manufacturing goods before any additional charges are added, which would give a profit. It includes costs such as labour, raw materials and energy, as well as interest on loans, site or building maintenance, or rent.” The ‘factory-gate price is a measure of the price of goods before they reach the distribution or retail sector.

The PPIs are calculated using data supplied from individual UK manufacturers, importers and exporters. A full explanation of how the PPI is calculated can be obtained from the ONS through this link.

 

RPI – Dairy

According to the most recent data, retail prices for fresh milk rose 0.3% between August and September. Retail cheese prices were up 0.4% over the same period. 

For fresh milk, retail selling prices in September rose 1.8% compared to a year earlier, while retail prices for cheese were up 3.8%.

Percentage change in retail sales prices for dairy products (2010=100) 

RPI table

Source: Office for National Statistics

RPI graph

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