UK factory gate prices surge to 17-year high
The Bank of England is facing further pressure to control rising inflation after it emerged that core factory gate prices surged to 5.9 per cent during May - the highest increase since 1991 and far above the expected 4.7 per cent.
Annual core output prices, which strip out food, beverages, tobacco and petroleum, rose to a 17-year high while on a month-by-month basis increased by 1.2 per cent, according to the Office for National Statistics (ONS).
Including fuel costs, factory gate prices surged 8.9 per cent in the year to May - the highest since comparable records began in 1986 - while input prices rose 27.9 per cent in the year to May, before fuel prices reached a new high of $139 a barrel last Friday.
All ten categories saw prices increase on the year led by a 28.5% surge in petroleum products on the back of record oil prices, which have reached as high as $139 per barrel last week. As manufacturers continue to pass on costs to consumers, inflation will rise above the BoE’s 3% threshold, where it currently sits. Inflation has become a growing global concern, which has many speculating that the MPC may raise rates at their next policy meeting.
Annual core output prices, which strip out food, beverages, tobacco and petroleum, rose to a 17-year high while on a month-by-month basis increased by 1.2 per cent, according to the Office for National Statistics (ONS).
Including fuel costs, factory gate prices surged 8.9 per cent in the year to May - the highest since comparable records began in 1986 - while input prices rose 27.9 per cent in the year to May, before fuel prices reached a new high of $139 a barrel last Friday.
All ten categories saw prices increase on the year led by a 28.5% surge in petroleum products on the back of record oil prices, which have reached as high as $139 per barrel last week. As manufacturers continue to pass on costs to consumers, inflation will rise above the BoE’s 3% threshold, where it currently sits. Inflation has become a growing global concern, which has many speculating that the MPC may raise rates at their next policy meeting.
