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Frequency of release: Quarterly
Geographical coverage: UK
Geographical breakdown: UK
Survey name(s): Services Producer Price Index (SPPI)
Estimated annual inflation in the UK service sector, as measured by the Services Producer Price Index (SPPI), continues to run at a relatively low level in quarter 2 of 2014.
The aggregate SPPI rose 1.6% in the year to quarter 2 of 2014, compared with a rise of 0.8% in the year to quarter 1 of 2014.
Between quarter 1 and quarter 2 of 2014 the aggregate SPPI rose 0.7%, compared with a fall of 0.4% last quarter.
Professional, Scientific and Technical Activities and Accommodation & Food made the greatest upward contributions to annual rate of the service inflation.
A quarterly measure of inflation for the UK service sector. It is constructed from a statutory quarterly survey which measures changes in the price received for selected services provided by UK businesses to other UK businesses and government. Individual SPPIs are available which provide information on price change for a selection of service industries. These individual price indices are also aggregated together to create a service industry SPPI with limited coverage (it does not provide full coverage of the service sector).
The service sector currently accounts for around 78% of the UK economy based on its weight in Gross Domestic Product (GDP). ONS does not currently produce an estimate for every industry in the service sector and so the aggregate SPPI is a partial, best estimate, of the overall inflation to UK businesses in the service sector. Currently, ONS estimates that the SPPIs presented in this statistical bulletin represent 55-60% of the total service sector.
These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.