UK output price inflation accelerated more than expected to the highest since 2011, data from the Office for National Statistics showed on Wednesday.
Output price inflation increased to 5.9 percent in August from 5.1 percent in July. The rate was expected to climb moderately to 5.4 percent. This was the highest rate since November 2011. Petroleum products had the biggest annual growth rate of 50.4 percent. Transport equipment provided the largest upward contribution of 2.07 percentage points to the annual rate.
On the month, the rate of output inflation was 0.7 percent in August, down from 0.8 percent in July. The expected rate was 0.4 percent.
Input price inflation surged to 11.0 percent from 10.4 percent a month ago. Prices were forecast to gain 10.3 percent. Crude oil had the highest annual growth rate of any component of input prices in August.
On a monthly basis, input prices climbed 0.4 percent, but down from the 1.3 percent increase posted in July. Economists had forecast a monthly growth of 0.2 percent.