The annual rate of inflation for goods leaving the factory gate slowed for the second time this year in June and follows a steep decline in input price inflation since January 2017.

Factory gate prices (output prices) rose 3.3% on the year to June 2017 from 3.6% in May 2017, which is the slowest rate prices have increased since December 2016.

Input prices rose 9.9% on the year to June 2017 from 12.1% in May 2017, meaning the annual rate has fallen 10 percentage points since January 2017.

Inputs of crude oil is the main driver of the recent slowing of input price inflation as annual price growth for crude oil fell from 88.9% in February 2017 to 9.1% in June 2017.

Core output inflation rose 2.9% on the year to June 2017 from 2.8% in May 2017 and is now the largest contributor to the annual rate of inflation for goods leaving the factory gate.