Tuesday, Jul 11, 2006

Manufacturers are trying to pass inflation to the consumer

TimesOnline: Factory prices add to inflation fears

Core output prices rose at their fastest rate for 19 months.
Manufacturing has held back passing on inflationary pressures of raw materials to their customers due in part to a subdued manufacturing sector but with manufacturing order books growing inflationary pressures are starting to appear at the factory gate and in turn the consumers pocket. The worse than expected figures will be monitored closely by the Bank of England (BoE) monetary policy committee (MPC) when considering the future direction of UK base rates.

Posted by denzil @ 11:17 AM (574 views)
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2 Comments

1. Surfgatinho said...

Nothing to worry about really!
a) As we all know any inflation is just a blip in the long term trend!
b) Producers will keep costs down so we can keep on consuming - unless that is you work for one of the producers and then you'll be heading for the dole queue!

How strange that 'analysts' are suprised by such figures when everybody on this site knows that inflation is creeping up

Tuesday, July 11, 2006 02:23PM Report Comment
 

2. Rickyb said...

I'm no economist, but it seems obvious to me that the cost of all manufactured goods is totally dependent upon the cost of the energy required to extract their raw materials and make them. Thus if the value of a currency relative to a unit of energy goes down, then surely manufactured goods are going to cost more. I too am surprised that 'analysts' are surprised at these figures.

Wednesday, July 12, 2006 09:33AM Report Comment
 

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