THE cost of goods leaving UK factories rose at the fastest annual rate in nine years last month as companies passed on soaring oil prices.
Rising crude prices were the main factor in output costs rising by 3.5 per cent in the year to last month, up from 3.1 per cent a month ago and the largest rise since December 1995.
Analysts said the higher than expected figure confirmed their view that the Bank of England would have to raise interest rates again to curb inflation.
Economist Philip Shaw, at Investec Securities, said: "It is a pretty nasty set of figures across the board. In particular, output prices are the big shock."
Oil prices rose by 52.7 per cent during the year to October.
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