British factory gate inflation hit double digits for the first time since comparable records began and manufacturers' costs jumped by a record 30% on the year in June, official data shows today.
The Office for National Statistics said that output prices rose 0.9% on the month in June, taking the annual rate up to 10% - the highest rate since 1986.
Input prices rose a seasonally adjusted 2.1%, taking the annual rate up to 30% - also the highest since the series began in 1986 as food and fuel prices rocketed.
The figures will do little to assuage Bank of England policymakers' fears over rising inflation even as the economy slows. Data tomorrow are likely to show another rise in consumer price inflation, already running at the highest rate in more than a decade.
The only bright spot for the Bank of England in June's producer prices data was a smaller than expected rise in core output prices on the month - up 0.3% - the weakest since November 2007. Analysts had expected a rise of 0.8%.
The ONS said this was because scrap metal prices had remained broadly steady after surging higher in previous months.
