LONDON: Costs paid by British companies for materials and imports rose at the fastest pace in around five years in the fourth quarter, something that will cause inflation to rise noticeably next year, a Bank of England survey showed on Wednesday.
Growth in both services and manufacturing sectors improved a little in the fourth quarter, helped by the strongest reading for factory exports since the third quarter of 2014, according to the BoE survey, based on the findings of its regional agents.
But the BoE said input costs had risen sharply.
"That was expected to start affecting consumer prices more noticeably in the New Year. Wage growth had remained stable, but some contacts expected upward pressures, including from higher inflation next year," the BoE said.
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