By Marcus Leach

Figures released by the Office of National Statistics (ONS) on Friday revealed that the price of manufactured goods rose by 6.1% in August.

It is the highest level of what is known as producer price inflation since October 2008.

The figures were somewhat of a surprise, as many economists had predicted a small decrease. However, as fuel inflation fell back the cost of raw materials rose 16.2%, which represents the lowest annual increase since March.

"We did see a month-on-month fall on the input prices," Keith Wade, chief economist at Shroders told the BBC

"That's very important because its picking up off the energy and oil prices coming off, so that is a crumb of comfort in these numbers."

Key Points

- In the year to August 2011 the output price index for home sales of manufactured products rose 6.1 per cent.

- Between July and August the output index for home sales of manufactured products rose 0.1 per cent.

- In the year to August 2011 the output price index excluding food, beverages, tobacco & petroleum rose 3.6 per cent.

- In the year to August 2011 the total input price index rose by 16.2 per cent.

- Between July and August the total input price index fell 1.9 per cent.

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