A genuine slowdown, not a blip
Average purchase price inflation in UK manufacturing slowed for the third consecutive month in August 2026, a sustained trend rather than a one-off reading. This follows a prolonged period of elevated input costs that squeezed margins across the sector.
Why the timing matters
Suppliers negotiating contracts during a sustained cost slowdown are typically more willing to offer favourable terms than those negotiating during a period of rising costs, when they are protecting their own margin. This window will not stay open indefinitely if cost trends reverse.
Making the most of the window
Prioritise renegotiation on contracts signed during the previous high-inflation period, where pricing is now furthest out of step with current market conditions. Acting during a sustained trend, rather than after a single favourable data point, gives more credible leverage in supplier conversations.
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