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Monday, 10 September, 2001, 13:21 GMT 14:21 UK
UK manufacturers' prices steady
Containers being loaded
Manufacturers argue the strength of sterling hampers exports
The price of UK manufactured goods barely changed in August, rising 0.1% from July in a further sign of the competitive pressures on the sector.

Meanwhile, the price of manufacturers' raw materials showed their steepest fall since May 1999.

There is no indication of inflation in the pipeline here

Don Eggington, Daiwa Securities
Data from the Office for National Statistics showed output prices had risen a mere 0.3% year on year in August.

Core output prices, which exclude volatile goods as food and oil, in August were unchanged from July and up 0.2% on the year.

The subdued figures were in line with economist forecasts. Analysts said they should reassure the Bank Of England's Monetary Policy Committee that there is little risk of inflation from this quarter.

"There is no indication of inflation in the pipeline here. This is good news," said Don Eggington, economist at Daiwa Securities in London.

Manufacturers' raw material costs fell by a seasonally adjusted 0.4% in August and 2.3% compared with August 2000 - the biggest monthly fall since May 1999.

See also:

06 Aug 01 | Business
UK manufacturing in recession
06 Aug 01 | Business
Q&A: The manufacturing recession
03 Aug 01 | Business
Gloom spreads to UK service sector
07 Aug 01 | Business
CBI: Manufacturers' woe worsens
10 Sep 01 | Business
CBI says DTI is too weak
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