Prices paid at factory gates in the U.K. continued to rise during the second month of the year, rising to the highest level in 28 months on surging energy costs, according to The Daily Telegraph. On Friday, the Office for National Statistics reported that input producer prices added 1.1% in February, which brought the year-over-year increase to 5.3%, which is the highest level since October 2008. Output prices added 0.5% on the month, with annual output price growth also at a 28-month high.
The strong inflationary pressure will increase calls for the Bank of England to move to contain rapid price growth. Howard Archer of IHS Global Insight said high oil and commodity prices “are likely to maintain pressure on manufacturers to raise their output prices in the near term,” adding, “The Bank of England will be desperately hoping that input costs will soon fall back” to limit output price increases. Core output prices added just 0.1% on the month for an annual 3.1% increase.
