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Release: Services Producer Price Indices, Quarter 1 2014

Released: 28 May 2014 (Latest) Next edition: 27 August 2014

Contact

Kat Pegler

Business Prices

ppi@ons.gsi.gov.uk

Telephone: +44 (0) 1633 456468

Categories: Economy, Prices, Output and Productivity, Price Indices and Inflation, Services Producer Price Indices

Frequency of release: Quarterly

Language: English

Geographical coverage: UK

Geographical breakdown: UK

Survey name(s): Services Producer Price Index (SPPI)

Correction

A production error was discovered on 6 June 2014 in Services Producer Price Indices, Quarter 1 2014, originally published on 28 May 2014.

This error affects the index for Business Telecommunications (series K8UI), the section-level index for Information and Communication (series MF2M), and the aggregate SPPI on a gross (series K8ZU) and net (series K8ZW) sector basis. All other indices in the release are unaffected.

This error will be corrected before the next release of Services Producer Price Indices, due to be published on 27 August 2014. This notice will be updated when the data are corrected.

ONS apologises for any inconvenience caused.

Key points

The key points from this release are:
  • 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 1 of 2014.
  • The aggregate SPPI rose 1.2% in the year to quarter 1 of 2014, compared with a rise of 1.5% in quarter 4 of 2013.

  • Between quarter 4 of 2013 and quarter 1 of 2014 the aggregate SPPI rose 0.1%, compared with a rise of 0.9% last quarter.

  • Professional, Scientific and Technical Activities made the greatest upward contribution to annual service inflation, partially offset by falls in Accommodation & Food prices.

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.

Content from the Office for National Statistics.
© Crown Copyright applies unless otherwise stated.