Factory gate inflation makes surprise rise

UK FACTORY gate inflation rose more than expected in December and at its fastest annual rate in nearly a year as oil prices jumped.

The Office for National Statistics yesterday said producer output price inflation was 3.5 per cent higher last month than a year earlier, beating the consensus forecast for a 3.1 per cent rise.

Input price inflation – the cost of manufacturers' raw materials – also picked up more than expected, by 6.9 percent, its fastest annual rate since November 2008.