Producer inflation hits 17-year high
Surging oil prices and higher tobacco and alcohol duties pushed producer price inflation to 17-year highs in March, according to figures from the Office of National Statistics.
The output price index for home sales of manufactured products rose by 6.2% in the year to March, with petroleum price rises accounting for 2.31% of this, the ONS said.
It compares with 5.9% for February and is the highest pace of increase since May 1991.
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The ONS added that, if passed on in full, the changes in excise duty on tobacco and alcohol announced in the Budget last month would have increased the index by 0.3% in March.
The input price index for materials and fuels bought by the manufacturing industry surged by 20.6% in the year to March, a 2.9% rise from the same figure for February, also mainly due to higher crude prices.
Crude oil and related commodities accounted for 10.76% of the 20.6% rise. The next biggest contributor was home food materials, which accounted for 2.68%.
