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UK inflation stoked by rising cost of crude
Thursday 19 Jan 2017 Author: William Cain

Surging oil prices, up 56.7% in sterling terms over the past year, contributed to a spike in the consumer prices index.

Consumer prices increased 1.6% year-over-year in December and inflation could hit 3% by the end of 2017, says PriceWaterhouseCoopers’ chief economist John Hawksworth.

Cost pressures in the UK’s supply chain, where manufacturing input prices gained almost 16%, are key reasons inflation could rise further.

Oil is the key factor pushing up input prices.

Imported metals were another big contributor, followed by higher prices of home food materials, parts and imported equipment and chemicals.

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