–Apr producer output prices +0.8% m/m; +5.3% y/y
–Apr core producer output prices +0.6% m/m; +3.4% y/y
–Apr producer input prices +2.6% m/m; +17.6% y/y
–Oil Contributed Over Half Of Input Price Rise

LONDON (MNI) – The rising cost of crude oil and imported goods
pushed input price inflation to its highest level for two and half years
in April, figures from National Statistics revealed Friday.

Input prices leapt 2.6% on the month in April and were up 17.6% on
the year, the highest annual rate since September 2008. Analysts had
expected to see a smaller rise of 1.6% on the month and 16.3% on the
year.

Crude oil prices rose 7.1% between March and April and rose 37.7%
on the year, the highest annual increase since May 2010. Over the past
year the rise in oil prices has added 9.4 percentage points, accounting
for just over half of the yearly change in input prices.

Since the April data were collected, oil prices have fallen back
sharply, suggesting this increase could well be reversed in the May
input price data.

There were also continued rises in the prices of imported chemicals
and other imported parts and equipment which rose by 1.5% and 1% on the
month respectively.

While consumer price inflation eased in March to 4% from 4.4% in
April, these latest figures suggest that there will be continued upward
pressure over the coming months as price rises at the producer level are
passed up the supply chain.

Producer output prices rose 0.8% on the month in April, although
the annual rate fell to 5.3% on the year from 5.6% in March. The median
from a Market News survey was for prices to rise a slightly lower 0.7%
on the month and 5.1%.

On the month, the largest upward impact came from a rise in tobacco
and alcohol products which were up 2.6% compared with March, mainly due
to an increase in excise duties on both products.

There was also upward pressure from petroleum products where prices
rose 1.3% on the month, mainly due to increases in the price of diesel
and unleaded petrol.

Clothing, textile and leather prices increased 1.3% between March
and April and by 4.6% on the year, the largest monthly and annual gains
since records began in 1996 and 1997 respectively.

The impact of the rise in clothing and footwear prices was mainly
responsible for the 0.6% monthly hike in core output prices, which were
up 3.4% on the year, the largest annual rise since September 2010.

–London newsroom 4420 7862 7491 email: drobinson@marketnews.com

[TOPICS: MABDA$,M$B$$$,MT$$$$,MABDS$]