Factory gate inflation increase at all-time high
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Increases in the prices manufacturers pay for their raw materials and charge for their finished goods are at their highest since records began more than 20 years ago, according to official figures released yesterday (12 May).
The office for National Statistics reported the overall output price index rose 7.5 per cent in the year to April, compared with a rise of 6.5 per cent in the year to March and in the single month of April the index rose 1.4 per cent, compared with a rise of 0.4 for March. These are the highest rate of increase since records began in 1986.
The monthly rise was mainly due to increases in steel scrap.
Prices of food products rose 9.3 per cent in the year to April.
Turning to input prices – the cost to manufacturers of the energy they use and the price paid for raw materials – the index rose 2.4 per cent in April and 23.3 per cent in the year to April, compared with a rise of 20.1 per cent in the year to March – another new record.
The monthly rise reflected increases in crude oil, imported parts, chemicals and metals.
