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Rising factory gate prices could
mean higher food costs
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Factory gate inflation rises at record rate
Garnet Roach garnet@consumerchoices.co.uk
The price of goods leaving British factories has soared to the highest point in 22 years according to statistics released today (12-05-08).
Output prices rose by 1.4 per cent in April, pushing the annual rate to 7.5 per cent - the highest since the Office of National Statistics began recording factory gate prices more than 20 years ago.
This increase has been in part due to the rising cost of raw materials - increasing by 2.6 per cent month on month and 23.3 per cent year on year - pushing up prices for manufacturers.
These latest figures will see further increases in living costs for the average consumer, warned Chris Eagle, CreditChoices.co.uk Commercial Manager.
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"Retailers are absorbing much of the increased costs themselves but retail prices could soon begin to rise more rapidly"
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“Last week the British Retail Consortium and research company Nielsen revealed that food prices had risen by almost five per cent in April - mostly driven by rising milk and wheat costs at the farm gate.
“At the moment retailers are absorbing much of the increased costs themselves, but if the current economic climate continues, retail prices could soon begin to rise more rapidly,” he concluded.
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