The office for National Statistics said input prices were up 2.5 pct in April from March on a seasonally adjusted basis, above analysts' expectations for a rise of 1.5 pct. In March, prices fell 0.2 pct, against the previous prediction of a 0.3 pct rise. The revision was due to new data on fuel prices.
A more detailed look showed that the monthly rise in input prices, which was the highest since July 2005, was mainly due to price rises in crude oil, metals and home produced food materials which were partially offset by a fall in fuels, including a 14,6 pct fall in gas prices. That was the biggest monthly fall in gas prices since June 2001.
The statistics office said crude oil prices rose 10.6 pct between March and April and were 45.0 pct higher on a year-on-year basis. The monthly rise is the largest since July 2005, when crude oil prices increased 11.4 pct. Crude oil prices are now at their highest since records began.
Meanwhile, imported metal prices rose by 4.4 pct in the month to April, the highest monthly rise since March 2004. It was mainly due to a 9.6 pct increase in imported copper, a 10.2 pct rise in imported platinum and a 2.2 pct spike up in basic iron and steel and ferro alloys. The monthly rises in imported copper and imported platinum are the largest since March 2004. On an annual basis, input prices rose by 15.7 pct in April, higher than expectations of a 14.3 pct increase. April's rise was the highest since December 2005. In March, input prices rose by 13.1 pct year-on-year. Elsewhere, the statistics office said that output prices, on a non-adjusted basis, rose by 0.6 pct between March and April, double the previous month's rate. Analysts were anticipating a more modest 0.5 pct increase. The rise in output prices over the month mainly reflected rises in petroleum product prices, which rose 2.1 pct. The figures were also affected by the Budget increases in taxation of tobacco and beer and wine. If passed on in full, the changes in excise duty on tobacco and alcohol would have increased the index by about 0.14 pct in April, the statistics office said.
On an annual basis, prices rose by 2.4 pct, down on the 2.5 pct recorded in March but above analysts' forecasts for a 2.3 pct rise
The statistics office also said that core output prices, which strips out more volatile components such as food, beverages, tobacco and petroleum, rose by 2.3 pct in April from a year earlier. That was the highest since May 2005 and was higher than expectations of a second consecutive 1.9 pct reading.
On a monthly basis, core output prices rose by 0.4 pct, higher than the 0.3 pct recorded in March. Analysts were expecting another 0.3 pct reading. April's reading was the highest since July 2005 when they also increased by 0.4 pct. It was last higher in October 2004, when they rose by 0.7 pct.