As per data compiled by the Office for National Statistics, costs of production are soaring due to higher oil prices, pushing Producer Price Inflation up by 0.2 per cent between July and August.

However the figures also showed that PPI dipped by 0.4 per cent for the year to August.

Manufacturers witnessed an increase of 2.2 per cent in raw-material costs between July and August. 

Figures depict signs of inflation slowly creeping back. But, most of the increased costs were absorbed by the manufacturers themselves.

Economist Jonathan Loynes said, “After the downward trend of the last year or so, it looks like the annual rates of input and output price inflation are on their way back up again.”

The Office for National Statistics said the increased costs of inputs are the outcome of higher crude oil costs.

It is worth mentioning here that Britain’s gross domestic product grew by 0.2 per cent between June and August. It was an improvement as in the quarter to July country’s GDP had dipped 0.3 per cent.

(Via TopNews United Kingdom. Contributed by Gurpreet Singh)