Firms fear margin squeeze
Bank of England: 'Supply chains may not recover'
Procurement to tackle rising council costs
Mitigating a supplier's input costs
Shortages fuel record input price inflation
17 January 2011 | Lindsay Clark
UK manufacturing input prices rose at an annual rate of 12.5
per cent in December, up nearly three points from the previous month.
This is the highest annual rate since April 2010, when the
index rose 12.6 per cent, figures from the Officefor National Statistics (ONS)
While buyers struggle with higher input costs, the ONS data
show output prices for the manufacturing sector
rose 4.2 per cent on the year to December, illustrating the difficulty of
passing on increases to customers.
The strongest influence on growing costs came from rising
prices in crude oil, which hit 26.2 per cent annually, contributing 5.7
percentage points to the overall increase. The next largest contribution to the
rise in costs came from imported metals, which made up 1.86 percentage points.
commodities such as oil made the major contribution to increasing costs, the
research revealed underlying price rises. For example, home-produced food
prices rose by 3.4 per cent between November and December and by 11.3 per cent
in the year to December.
Meanwhile, figures from Eurostat show euro areaannual inflation was 2.2 per
cent in December 2010, up from 1.9 per cent in November, while EUannual
inflation was 2.6 per cent in December 2010, up from 2.3 per cent in November.