Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Factory prices in line with inflation trend

Peter Torday
Monday 18 April 1994 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

FRESH evidence that UK inflationary pressures remain subdued, and a further fall in consumer confidence, yesterday boosted hopes of another quarter- point cut in base rates to 5 per cent, writes Peter Torday.

Factory gate prices rose just 0.1 per cent in March, after adjustment for seasonal influences, driving down factory gate inflation to 2.7 per cent in the year to March from 3.4 per cent the previous month. Excluding volatile prices for food, drink, tobacco and petrol, factory gate inflation was unchanged at 2.5 per cent in the year to March.

On that basis, prices rose at an annual rate of 0.8 per cent in the latest three months over the previous three-month period - the lowest figure since 1973.

Yesterday's producer price figures contained less bullish news on industry's raw material costs. After seasonal adjustment, raw material costs rose by 0.5 per cent leaving costs in the year to March 2.6 per cent lower than a year earlier. Excluding materials and fuel purchased for the food, drink, tobacco and petroleum processing industries, prices were 0.5 per cent lower than a year earlier.

A consumer survey by Gallup for the European Commission showed that the balance of pessimists over optimists regarding their household finances fell to minus 30 per cent in April compared with minus 25 per cent in March. This is almost level with the all-time low of minus 31 per cent reached in March 1990.

The Engineering Employers Federation meanwhile has warned that a further 40,000 engineering jobs will go over the next year despite a gradual recovery in the industry.

The federation's latest Engineering Economic Trends show total engineering output will rise by 3 per cent by the middle of 1995 from the second half of last year.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in