March figures from the Office of National Statistics show producer output price inflation hitting 6.2%, a rise of 0.3% since February - the highest for 17 years.
As consumers start to feel the pinch of high street price rises, manufacturers are already there, having seen raw material prices rise by an average of 20.6%. Fuel costs have hit transportation overheads too. Increases in alcohol Duty in the budget have also impacted the producer output inflation figures.
As demand slows, figures for consumer inflation have also hit a nine-month high. The only good news is for exporters - the strength of the Euro giving a competitive edge abroad as UK products appear cheaper - but only providing raw materials are sourced domestically.
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