THE prices of goods leaving Britain's factory gates were unchanged last month, showing manufacturers' margins remain under pressure, figures showed yesterday.

Data from the Office for National Statistics showed falls in the price of petrol and clothing were offset by rises in tobacco and chemical product prices.

Output prices remained unchanged in July from the previous month although in the year to July, they rose 0.3 per cent.

Input prices the price factories pay for raw materials rose 0.6 per cent on a seasonally-adjusted basis, following a rise in crude oil prices.

Economists said the data showed demand was still subdued and manufacturers remained unable to pass on cost increases.

Ross Walker, economist at Royal Bank of Scotland, said: "Manufacturers' margins remain under pressure and companies are unable to pass on price rises, but that has been the case for ages."

Economists said the jump in the yearly output prices - the highest since June 2001 - resulted from a drop in prices a year ago.

Philip Shaw, economist at Investec, said: "The figures show very little inflationary pressure in the pipeline. Margins are still very much under pressure and the year-on-year rise is very much due to a fall a year ago.

"Manufacturers' margins are coming under pressure as input prices have risen again, and global demand remains subdued."