UK factory gate prices increase

Prices charged by manufacturers rose faster than expected in February, official figures have shown, as firms sought to cover rising costs.
The Office for National Statistics (ONS) said the price of goods leaving factory gates rose 0.4% on the month to stand 2.8% higher for the year.

Producer input prices rose 0.1% in February on higher oil costs, giving an annual increase of 10.7%.

“While this is a less disturbing report for the Bank of England than it might have been, it nevertheless keeps an interest rate hike in May very much on the cards,” said Howard Archer, of Global Insight.

“Particularly worrying, input prices rose at their fastest rate for nearly a decade in February, and oil prices have since moved up significantly further to set new nominal record highs in March.”
BBC