British producer prices jump in December

14th January 2011, Comments 0 comments

The price of goods leaving British factories rose in December by the largest amount in eight months, official data showed on Friday.

Producer prices soared 4.2 percent in December compared with the same month in 2009, the Office for National Statistics (ONS) said in a statement.

That was the highest rate since April and compared with market expectations for a gain of 3.9 percent, according to analysts polled by Dow Jones Newswires.

Compared with November, producer prices rose 0.5 percent, the ONS added.

"Month on month the output prices measure for all manufactured products rose 0.5 percent between November and December, mainly reflecting price rises in petroleum (including duty) and food products," it said.

Manufacturers also suffered, with input prices soaring by 12.5 percent in December compared with the same month of 2009.

"December's producer prices figures revealed that cost pressures in the manufacturing sector are continuing to intensify," said Capital Economics analyst Samuel Tombs.

"But this should not prevent consumer price inflation from falling back in the medium term."

© 2011 AFP

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