Output prices at four-year high
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.PAUL WALLACE
Economics Editor
Factory gate inflation rose to its highest for more than four years in October, but the underlying outlook for inflation in the manufacturing sector brightened. Core prices charged by manufacturing rose by the smallest amount for more than a year and the prices for materials and fuel purchased by manufacturing fell for the first time since January 1994.
Despite the rise in output prices to 4.6 per cent, its highest since August 1991, the Treasury said there were clear signs that pressures in the pipeline from input price inflation were subsiding. Spokesmen also drew attention to the fact that the quarter-on-quarter annualised rate of inflation in core manufacturing output had fallen from 4.8 to 4 per cent.
But Andrew Smith, Shadow Chief Secretary, said the factory gate prices figures should be taken as a serious warning on inflation as the Chancellor shaped his Budget.
The markets reacted favourably to the figures, which many analysts saw as encouraging. Michael Saunders, UK economist at Salomon Brothers, said: "Weaker output price data are a key step on the road to lower base rates."
Although overall factory gate inflation rose from 4.5 to 4.6 per cent in October, the core index, which excludes food, beverages, tobacco and petroleum fell from 5 to 4.8 per cent. There was even more encouraging news with input prices. The fall in seasonally adjusted input prices of 0.3 per cent, the first for almost two years, brought the annual rate down from a revised 9.2 to 7.8 per cent.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments