U.K. Factory Prices Climbs to a 14-Month High

The official figures published on Friday revealed that the U. K. factory gate prices registered a climb at their fastest rate in 14 months in the year to February and at more than double their average rate compared to the past decade.

The rise is revealed to be triggered by increases in petroleum, electrical and other manufactured products, the Office for National Statistics said Friday.

Output producer prices registered a 0.3% jump from January and were 4.1% higher than February 2009. In January, output prices jumped 0.4% on a month-to-month basis and 3.8% on the year.

Howard Archer, chief U. K. and European economist at IHS Global Insight quoted, "The February producer prices data essentially reinforce the belief that consumer price inflation is likely to remain elevated over the next few months after reaching 3.5% in January, and the risk remains that it could prove stickier than hoped for thereafter."

However, economists reveal that they didn't hope the figures to make the Bank of England's Monetary Policy Committee jittery as it watches over the economy's gradual recovery from recession.

January's rise in input prices was also cut to 1.3% on the month and 7.7% on the year from initially reported gains of 2.0% on the month and 8.4% on the year.