LiveCharts.co.uk

+ Favorites!

Stock  Market News

UK producer prices top forecasts
05-02-2010 09:56

Back to News headlines »»


UK producer prices rose more than expected in January, according to figures released by National Statistics on Friday.

Output prices rose 0.4% in January compared to December, pushing the annual rate up to 3.8% from 3.5% in December, the highest since December 2008.

The statistics office said the rise was mainly reflecting price rises in petroleum, other manufactured products, tobacco and alcohol products. Analysts had anticipated a 0.3% monthly rise.

The input price index for materials and fuels purchased by manufacturing industry rose 8.4% in the year to January and rose 2.0% between December and January.

The rise in the input index between December and January mainly reflected a rise in the price of crude oil, and to a lesser extent fuels (inc CCL) and imported parts and equipment. Prices of imported materials as a whole (including imported crude oil) rose 1.7% between December and January.

The input price index for manufacturing industry excluding the food, beverages, tobacco and petroleum industries was up 1.8% in the year to January. Seasonally adjusted, the index rose 0.7% between December and January.

'Producer output and, especially, input prices both rose more than expected in January, thereby adding to the recent upside surprises on inflation,' said Howard Archer, chief UK and European economist of the analysts IHS Global Insight.

'Even so, January's further appreciable rise in producer prices maintains concern that consumer price inflation will not only spike up to 3.5% or higher in the near term but could also prove stickier than hoped thereafter,' he added.

Related shares
Enter share symbol
Search share prices A to Z
share price