UK factory inflation hits 14-month high

By Angela Monaghan, Economics Editor Published: 7:45PM GMT 05 March 2010

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UK bureau acceleration hits 14-month high Photo: Rui Vieira/PA Archive

So-called bureau embankment acceleration rose by 0.3pc during the month, pulling the annual acceleration rate to 4.1pc from 3.8pc in January, that was the top turn given Dec 2008. The monthly climb was somewhat forward of the 0.2pc enlarge approaching by economists.

The prices manufacturers were charged for their tender materials submit prices rose some-more modestly, by 0.1pc in February. This enlarge was mostly driven by rises in the prices of alien parts, apparatus and chemicals. The Office for National Statistics pronounced the rises were mostly equivalent by falls in the cost of fuel and oil. Annual submit cost acceleration eased some-more than economists expected, to 6.9pc from 7.7pc in January.

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"The justification suggests that manufacturers are perplexing to take value of a little new singular alleviation in wake up to pull by cost increases and await their margins in the face of not long ago rising submit costs," pronounced Howard Archer, arch UK economist at IHS Global Insight. "Even so, manufacturers have usually been means to pass on a little of their higher costs with the outcome that their margins have been squeezed significantly recently."

Consumer prices inflation, the central magnitude of acceleration in the UK is now at 3.5pc, significantly higher than the 2pc target. However, the Bank of England has regularly argued that the inflationary spike is temporary, and that it will ease after in the year.

Separately, the ONS pronounced that building a whole outlay fell 11pc over 2009, after descending by 1pc in the fourth quarter. The Construction Products Association (CPA) pronounced it was the largest singular year tumble given the three-day week in 1974.

"Today"s total spell out the thespian stroke of the retrogression on the building a whole industry in that a little experts guess up to 500,000 jobs have been lost over the last dual years," pronounced Michael Ankers, arch senior manager of the CPA. "The usually thing that has prevented the industry from pang an even some-more thespian downturn has been the one after another high turn of open spending on construction."

Mr Ankers pronounced the CPA was dire the main made at home parties to dedicate to a postulated turn of building a whole outlay at 2.25pc of sum made at home product by the hold up of the subsequent parliament.