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benn

Sharp Fall In Factory Gate Prices

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http://news.bbc.co.uk/1/hi/business/8189337.stm

The prices of goods leaving UK factories fell at their sharpest annual pace in nearly eight years last month, official figures have shown.

"Factory gate" prices in July were down 1.3% from a year ago, although they were up 0.3% from June.

Input prices - the cost of materials and fuels that manufacturers buy - fell at the steepest annual rate in almost 23 years, down 12.2%.

Analysts said the data showed consumer price inflation would continue to ease.

"July's muted producer prices data reinforce the belief that consumer price inflation is headed down significantly further over the coming months," said Howard Archer, chief UK and European economist at IHS Global Insight.

The latest Consumer Prices Index (CPI) figures showed inflation slowing to 1.8% in June from 2.2% in May, while the Retail Prices Index (RPI) inflation measure fell to -1.6% from -1.1%.

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Could Sibley tell me how this affects the recovereh?

Can you?

Or are you just another another copy and paste man?

Edited by judas

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great Im going into Sainsburies because prices are down 1.3%

hold on, last month i shopped they were .3% cheaper than this month.

are prices UP or DOWN.

confused of UK

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http://news.bbc.co.uk/1/hi/business/8189337.stm

The prices of goods leaving UK factories fell at their sharpest annual pace in nearly eight years last month, official figures have shown.

"Factory gate" prices in July were down 1.3% from a year ago, although they were up 0.3% from June.

Input prices - the cost of materials and fuels that manufacturers buy - fell at the steepest annual rate in almost 23 years, down 12.2%.

Analysts said the data showed consumer price inflation would continue to ease.

"July's muted producer prices data reinforce the belief that consumer price inflation is headed down significantly further over the coming months," said Howard Archer, chief UK and European economist at IHS Global Insight.

The latest Consumer Prices Index (CPI) figures showed inflation slowing to 1.8% in June from 2.2% in May, while the Retail Prices Index (RPI) inflation measure fell to -1.6% from -1.1%.

Should be interesting how this plays out ... a lot of inputs that were exerting downward pressure on the inflation indices are about to go neutral or even start exerting upward pressure in the next 5-6 months.

The oil spike of last Summer will drop out.

The VAT cut from 17.5% to 15% (a near actual 15% reduction in VAT) will be reversed at the end of the year.

The massive interest rate cuts will drop out. IR rises could be on the way.

The sharp drop in house prices seems to have been arrested for now.

... and that's not taking into account the fact that we import so much, so lower costs on home produced goods have less of an impact. Especially with the fall of the pound.

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