14th July 2008
Last month, manufacturers charged 10% more for their goods than they had done a year before, official figures have shown.
The rise in factory gate prices in June quickened from that in May, when prices were 9.3% higher than the same time in 2007. This rate of inflation is the highest since 1986, according to the Office for National Statistics.
The increases have been blamed on the rising costs of oil and petrol. Oil prices reached an all time high last month, at $149 a barrel, while the cost of raw materials has increased 30% since last June.
Global Insight's chief economist Howard Archer told the BBC that the figures were "horrible".
"Going forward, the Bank of England will be fervently hoping that recent clearly softer demand for manufactured products will increasingly deter manufacturers from trying to raise their prices and limit their ability to do so," he said.
Manufacturer prices up 10%
The rise in factory gate prices in June quickened from that in May, when prices were 9.3% higher than the same time in 2007. This rate of inflation is the highest since 1986, according to the Office for National Statistics.
The increases have been blamed on the rising costs of oil and petrol. Oil prices reached an all time high last month, at $149 a barrel, while the cost of raw materials has increased 30% since last June.
Global Insight's chief economist Howard Archer told the BBC that the figures were "horrible".
"Going forward, the Bank of England will be fervently hoping that recent clearly softer demand for manufactured products will increasingly deter manufacturers from trying to raise their prices and limit their ability to do so," he said.
Tags: Office
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