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UK producer prices strike three year high

UK producer prices pushed up by food and petrol costs
UK producer prices pushed up by food and petrol costs

The prices of goods leaving Britain's factories hit a three-year peak in September, propelled by rising food and petrol costs, official data showed today, fanning fears of higher inflation.

Producer prices surged 6.3% last month compared with September 2010, the Office for National Statistics said in a statement.

That was the strongest annual increase since October 2008 and was in line with market expectations, according to analysts.

The ONS added that prices rose by 0.3% in September compared with August.