Business

Factory gate inflation falls back in November

Diesel pump
Image caption Fuel prices rose more slowly in November 2010 than they did a year ago

The price of goods leaving UK factories rose more slowly than expected in November, according to the Office for National Statistics (ONS).

Annual producer output price inflation fell to 3.9% in November, down slightly on October's 4% figure.

Slower petrol price rises than last year were cited as the reason, although they were 9.8% higher than a year ago.

The input price inflation figures were delayed because of what the ONS said were "potential errors".

The ONS said it was planning to release these on Monday once it was confident of the quality of its data.

The output figure, provided by the Office for National Statistics (ONS), had been expected to show a rise to 4.1%.

The slower-than-expected rate of producer price inflation suggests that underlying inflation is waning.

In recent months, the Bank of England has refused to raise interest rates despite high inflation in the belief that underlying price pressures would weaken.

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