Factory prices rise fastest since 1996

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The Independent Online

Manufacturers are starting to pass on the impact of rising costs, according to figures from the Office for National Statistics yesterday that showed the price of goods leaving UK factories last month rose at the fastest pacesince August 1996. But factory gate inflation is still outpaced by the rising cost of raw materials, indicating that margins remain under immense pressure.

Manufacturers are starting to pass on the impact of rising costs, according to figures from the Office for National Statistics yesterday that showed the price of goods leaving UK factories last month rose at the fastest pacesince August 1996. But factory gate inflation is still outpaced by the rising cost of raw materials, indicating that margins remain under immense pressure.

The core measure of output price rose 1.2 per cent in the year to July. The headline rate of output inflation rose 0.2 per cent between June and July to leave the annual rate unchanged at 2.9 per cent. Year-on-year input prices rose 11.3 per cent compared with 14.4 per cent in June.

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