FACTORY gate prices have risen to their highest level for eight years.
Output price inflation, excluding food, drink, tobacco and petrol, rose three per cent in the year to last month, the highest since March 1996, figures from the Office for National Statistics (ONS) showed.
The overall output price index rose 3.5 per cent to November and by 0.1 per cent between October and last month, the ONS said.
However, a steep fall in the cost of crude oil led to a 1.7 per cent fall in the cost of raw materials and fuel bought by manufacturers between October and last month.
Analysts said the fact that factory gate prices were rising while raw material costs fell showed that companies were still widening their profit margins.
The figures represented the first signs that inflationary pressures could be starting to ease, given the recent falls in oil prices, they said.
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