UK inflationary pressures subdued

The costs of raw materials for UK industry fell in October, mainly as a result of crude oil prices easing back during the month.

The latest seasonally adjusted figures from the Office for National Statistics show that producer input prices - which include such items as metals, chemicals and foodstuffs as well as oil - fell by 0.9%.

But the earlier surge in the cost of oil meant that raw materials were still 12.1% higher than a year earlier.

Despite this, there was little to suggest that producers are passing on higher costs to consumers, with output prices (the price of finished goods supplied to wholesalers) rising by only a modest 2.6% in the year to October.

On the margin

This compares with 2.5% in the year to September and suggests that manufacturers' profit margins are continuing to be squeezed.

Producer input prices had risen 2.8% in September, putting pressure on manufacturers to raise the price of their goods.

Even having dropped back from their peak, crude oil prices are still 56.9% higher than a year ago.

The figures were roughly in line with City expectations.