August PPI output prices post record monthly fall
Manufacturing output prices fell in August at their sharpest monthly rate since records began in 1986 because of lower petrol and scrap metal prices, in a sign that factory gate inflation may have peaked.
ONS says output price annual inflation upThe Office for National Statistics said unadjusted output prices fell 0.6 percent in August, taking the annual rate of increase down to 9.7 percent from 10.3 percent in July. Analysts had predicted a rate of 10.2 percent.
Core output prices, which exclude food, drink, tobacco and petroleum fell 0.1 percent, the first monthly drop in nearly three years.
Manufacturers' raw material costs also fell more than expected last month with input prices dropping a seasonally adjusted 2.0 percent on the month, thanks to falls in crude oil, fuel, wheat and metal prices. July's drop was also revised to show a steeper fall.
After months at which producer prices have been soaring at record rates, the latest data are likely to boost expectations that falling oil prices and slowing economic growth will slow Britain's headline inflation rate over the next year.
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