By Max Clarke

The Office of National Statistics (ONS) has today published its Producer Prices index for the past year ending December 2010.

Output prices for UK manufactured products for the end of December 2010 rose by 4.2%, compared with the same month the year before.

This price rise was in part inflated by spikes in petroleum, and the output price index rise falls to 2.9% excluding food, beverages, tobacco and petroleum.

Rising costs of imported materials, with a mean input price rise of 12.5% over the past year (8.7% excluding the more volatile food, beverages tobacco and petroleum industries) guided the overall increase in the cost of export products.

Petroleum input prices rose 12.6% over the year and crude oil 26.2%; food prices rose 3.3%; and oils and fats rose 4%.

Output prices for tobacco and alcohol saw an annual rate of 5.1%, for machinery, 3.9%, for computer, electrical, and optical equipment, 3.5% and for clothing, textiles and leather, the figure was 1.3%- unchanged from the previous month.