Factory price inflation 'on increase'

Factory price inflation is increasing at a significant rate, it has been claimed.

According to data released by the Office for National Statistics (ONS), an organisation established in 1996, companies are increasingly opting to pass cost increases in the areas of oil and food produce on to consumers.

The current inflationary trend is the most significant since 1991, when factory inflation increased to a total of 5.2 per cent.

However, in November inflation levels were lower, increasing from October's rate of 3.8 per cent to a higher rate of 4.5 per cent.

"Inflationary pressures are still building up down the supply chain," said Howard Archer, chief European economist at Global Insight.

"The Bank of England continues to face a difficult job in juggling rising near-term inflationary pressures and a slowing economy," he added.