12-12-2007
Fresh increases seen in factory price inflation
Data has been published showing a steep increase in the cost of goods from Britain's factories.
Reports show that companies are choosing to pass on to consumers the effects of cost increases currently being felt from food products and oil, and represent the steepest since 1991.
These findings are the result of data released by the Office for National Statistics (ONS), a government department created in 1996.
"Inflationary pressures are still building up down the supply chain," said Howard Archer, chief European economist at Global Insight.
"The Bank of England continues to face a difficult job in juggling rising near-term inflationary pressures and a slowing economy," he added.
Compared with August 1991 when factory inflation rose to 5.2 per cent, ONS data shows that inflation levels for November grew to a total of 4.5 per cent.
In October, inflation was 0.7 per cent lower at 3.8 per cent.