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Factory gate price rises at five-year low
08.05.09
Factory owners pushed through price rises last month, but at their lowest levels for five years, suggesting inflation is still not a danger for the economy.
The Office for National Statistics said prices leaving the factory gate were up just 1.2% on the year against 2% in the 12 months to March.
Most economists had expected the decline to be greater as demand for products dried up due to the recession.
However, the figures were still taken as encouraging that the sharp fall in the value of the pound was not yet stoking up inflationary problems for the economy despite its upwards impact on the price of imported goods and services.
