Factory gate inflation surges in June

| July 8, 2011 | 0 Comments

The Office for National Statistics (ONS) has today revealed UK producer output prices surged in June to their highest level since October 2008.

According to the ONS, output prices (factory gate) annual inflation for all manufactured products grew by 5.7% in June – slightly higher than forecasts of a 5.6% rise and the biggest annual rise in over 2½ years.

Meanwhile, input prices for June were 17% higher on an annual basis.

Yesterday, the Bank of England’s Monetary Policy Committee opted to keep interest rates at the record low of 0.5% - where they have been since March 2009.

The measures come despite consumer price inflation being more than double the 2% target and today’s figures are evidence of increasing price pressures.

However, economists believe there will be no movement in interest rates for the remainder of the year as the economic recovery remains sluggish.

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