factory gate prices surged at their fastest annual rate for nearly three years last month, figures revealed yesterday, but economists said the trend is unlikely to be sustained in future months.
Manufacturers increased their output prices by 6.3 per cent year-on-year in September, compared with a 6 per cent rise the previous month, the Office for National Statistics said.
The increase was driven by a surge in the cost of petroleum products and food, but analysts said it was unlikely to be fed through to consumers as oil costs have since come off the boil.
The figures come a day after the Bank of England’s Monetary Policy Committee (MPC) voted in favour of injecting £75bn into the economy through its quantitative easing programme to jump-start the recovery.
The cost of petroleum products increased by 18.1 per cent year on year, while food prices surged 9.4 per cent, the ONS said.
Factory gate prices rose 0.3 per cent month on month in September, after flat-lining in August.
Meanwhile, input prices – the costs paid by manufacturers for materials – increased by 1.7 per cent between August and September.
Economists said the pick-up in price inflation seems unlikely to be sustained in future months.