Producer Output Price Rises In September

The output prices of home sales of manufactured products increased by 2.5% in the year to September 2012 compared with an increase of 2.3% last month according to a statistical bulleting from the ONS. Between August and September the index for output rose by 0.5%, the same as between July and August. Input prices however fell b y 1.2% in the year to September 2012 compared with a fall of 1.1% last month. Input prices also fell between August and September by 0.2% compared with a rise of 1.9% between July and August. The largest changes in output prices were in tobacco and alcohol with an 8.7% increase, petroleum products 3.4%, computer, electrical and optical with 2.9% and other manufactured goods with a 2.8% change. The largest changes in input price were in imported metals with a -12.8% percentage change and home food materials with a change of 10.1%. Fuel increased by 7.4% and crude oil fell by 2.3%. Imported chemicals and imported parts and equipment also fell by 3.6% and 3% respectively.

Manufacturing Up By 2.7%

The index of production from thew ONS increased by 0.7% in March 2011 compared with March 2010. Manufacturing increased by 2.7% over the same period (figures are seasonally adjusted). The energy supply sector is also helping to drive growth.

Over the last quarter production grew by 0.2% with manufacturing growing by 1.1%. The largest contributions to the growth in manufacturing were in transport equipment (5.1%), food, drink and tobacco (1.4%) and electrical and optical equipment (2.9%). Mining and quarrying fell by 10.7% in March on March a year ago and by 1.4% on the quarter.

Factory Gate Prices Increased In August

Producer output and input price indices from the ONS increased in August. The output index for home sales of manufactured goods increased by 4.7% over the year to August. The monthly index between July and August was unchanged. The inputs index shows an increase of 8.1% over the year but a fall of 0.5% over the month to August.

The main contribution to the change in the annual output index was an increase of 11.6% in the price of petroleum products. Other significant contributions came from 'other products' (6.9%) and electrical and optical (6.5%). On the inputs side, significant contributions were made by imported metals (17.5%), crude oil (11.8%) and imported chemicals (10.7%).

Shop Price Inflation Down To 1.8%

Shop price inflation fell to 1.8% in May from 2% in April according to the Shop Price Index (SPI) from the British Retail Consortium (BRC). Food inflation rose to 2.2% from 2% but non-food inflation fell to 1.6% from 2% in April.

A BRC spokesman said that the fall in the SPI happened despite big rises in some costs. Clothes and electricals are cheaper than last year but the rises in the price of oil are putting pressure on transport costs. Prices are being held down as customers still lack the confidence to spend. Tinned and packet food were the main causes in the rises in food inflation as falls in commodity prices, for products like coffee and wheat, still in the system are being awaited.