Factory Gate Inflation at Record Levels
According to figures released this morning by The Office For National Statistics, 'factory gate' inflation for all manufactured products rose in May to a record 8.9%.
Input price annual inflation also surged in May to 27.9% (from 24.3% in April), amid fears that the inflation seen in fuel prices is making its first tangible impact outside the fuel and energy markets.
These figures represent the quickest growth since records began in 1986 and are seen as a direct result of the unprecedented increases in global oil and metal prices. The concern is that businesses will be forced to pass on the cost to the customer in a market where they are already finding purse strings tightly drawn.