Shock rise in factory gate prices

Factory gate prices have gone against the trend of falling inflation

The prices of goods leaving UK factories rose for the first time in five months in September, the Office for National Statistics (ONS) said.

"Factory gate" prices in September were up 0.5% from a year ago, and climbed 0.4% from August. Analysts had expected a year-on-year fall of 0.1%.

Most sectors contributed to the rises, the official figures showed.

Input prices - the cost of materials and fuels that manufacturers buy - fell at an annual rate of 6.5%.

This was the least negative they have been since April.

The latest Consumer Prices Index (CPI) figures showed inflation dropped to an annual rate of 1.6% in August from 1.8% in July.

But the Retail Prices Index (RPI) inflation measure, which includes mortgage interest payments and housing costs, rose, to -1.3% from -1.4%.

Separately, the ONS said the UK's trade gap with the rest of the world narrowed slightly to £6.24bn in August from £6.43bn in July.

It was the smallest trade gap since June 2006.