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Factory Gate Inflation Highest Since April

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Factory gate inflation highest since April
Peter Griffiths and David Milliken, 10:38, Friday 14 January 2011
) - British factory gate inflation rose in December to its highest annual rate since April, driven by a sharp rise in the price of crude oil and food that will add to the Bank of England's worries about inflationary pressures.

Merv to the lads: We must do our duty and remain vigilant, no matter what the cost.

Edited by Realistbear

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Actually this figure was for input price inflation which had risen on an annual basis to 12.5%. As the first comment points out this is the highest for this figure since April 2010 which rather shoots down the Bank of England's claims that inflation rises have been "one-off" and "temporary".

Also I have been reading some analysis from a UK economist Shaun Richards who has looked at the way the figures have recently been recalculated by the Office for National Statistics and here is what he thought of it at the time.

This seems innocent enough but I have looked at the numbers for 2010 and this is its impact on the headline output number for produced price inflation for the months of this year so far. They are -0.3%,-0.4%,-0.5%,-1%,-0.5%,-0.7%,-0.8%,-0.5% and -0.6%.

So on our old basis the numbers are even worse than they look......and we have yet another recalculation which surprise,surprise reduces the reported figures.

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We will have to wait until Tuesday for the consumer price inflation figures but these producer price ones certainly hint at more inflation developing in our system.

Of the course the Bank of England will call it one-off and temporary.

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