Factory prices surge as costs rise

THE price factories are charging for their products surged last month month as they passed on the rising cost of energy and raw materials.

Prices jumped 4.1 per cent on the year last month compared with January's 3.8 per cent, according to the Office for National Statistics (ONS).

Core inflation is running at 3.5 per cent, well above the Bank of England’s central target of 2 per cent.

Howard Archer, chief economist at HIS Global insight said: "We suspect manufacturers will find it very difficult to make significant price rises stick over the coming months given excess capacity and elevated competition amid still-challenging conditions."