UK output prices at a standstill

Jane Padgham12 April 2012

THE lack of inflationary pressure in Britain's manufacturing sector was highlighted by figures showing factory gate prices are at exactly the same level as a year ago

Government statisticians revealed that output prices were steady in June and unchanged from 12 months earlier. Further up the inflation pipeline, manufacturers' raw material costs plunged by 0.9% during the month to stand 7.2% lower than a year ago. The fall was driven by a sharp drop in oil prices.

John Butler at HSBC said: 'This set of numbers tells us inflationary pressures from the manufacturing sector remain non-existent, but margins have stabilised.'

Meanwhile, a CBI report showed the financial services sector enjoyed an unexpected pick-up in business in the second quarter, with volumes growing at the fastest rate for two and a half years. Volumes are expected to increase further, but at a more moderate rate.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in