Notice board

AMPE and MCVE costs updated to reflect Q2 inflation change | AHDB

In Q2 2023, the cost of electricity declined by 9.4% compared to the previous quarter and gas declined by 11.5%. On the other hand, overall inflation (as measured by the Consumer Price Index) increased by 2.4% on the quarter. When compared with the same quarter in the previous year, electricity, gas and overall inflation rose by 17.7%, 10.6% and 7.7% respectively.

The net impact of the latest quarterly cost declines is for the average processing costs within both AMPE and MCVE to move down on the quarter. AMPE costs are now 0.32ppl lower than the previous quarter while MCVE costs are lower by 0.26ppl on average.

The decline in energy costs were marginally offset by a continued increase in overall inflation and labour costs. Though energy costs have eased, they remain at historical high levels. When compared to average processing costs in Q2 2022, AMPE cost has moved up by 0.6ppl and MCVE cost has moved up by 0.7ppl.

Note that this latest update only reflects cost inflation to June 2023, including data revisions. The next update will be in January 2024 following the ONS release of the 2023 Q3 cost indexes. A breakdown of the latest costs is given below: