UK output price inflation subdued

The cost of goods leaving British factories rose 0

The cost of goods leaving British factories rose 0.1 per cent in June from May, according to the National Statistics (NS) office in Britain.

It now stands 0.4 per cent higher on the year on a non-seasonally adjusted basis, the figures show.

The figures also reveal companies are having to pay more for raw materials and fuels, even though cost pressures remain quite subdued.

NS said so-called input prices rose a seasonally adjusted 0.1 per cent on the month and 2.6 per cent on the year.

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The figures were broadly in line with market expectations, although input prices had been forecast by economists to fall slightly on the month.

NS said rises in the price of petrol had been partially offset by lower prices for foods, particularly meat.

Markets barely flickered on the data, with sterling steady at the day's lows against the dollar at $1.4085 and 60.10 pence per euro.

Leading shares remained mired in negative territory, however, with the FTSE 100 index nursing a 42-point loss at 5,437 points.