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LONDON (ShareCast) - Raw material costs for Britain's manufacturers soared in April, according to the latest survey, after runaway oil prices cruised to record highs.

The Office for National Statistics said raw material costs jumped 2.5% in April, Advertisement

their fastest pace for nine months, while factory gate inflation, the price charged by manufacturers, slowed slightly to an annual rate of 2.4%.

The report revealed that core output prices, excluding volatile costs such as food, tobacco and petrol, also rose at their fastest pace in nine months up 0.4% on the month and 2.2% on the year.

The news fuelled concerns that rampant raw material costs are beginning to feed through.

On an annual basis input prices rose 15.7% led largely by soaring crude oil prices, which overshadowed a sharp fall in gas prices, while sales of poultry products also dropped regarding fears over bird flu.

So does core output prices = inflation?

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So does core output prices = inflation?

Yes – but I don’t think the factory’s can increase output prices by as much as input prices – they will go bust if they don’t raise them and they can not compete if they do raise them.

Perhaps they won’t need to raise them in the long run if oil prices come down?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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