Fall in oil price cuts British costs

Fall in oil price cuts British costs

Output prices in Britain have reportedly declined to the lowest level since November 2001 last month and raw material costs have also shown a decline. The National Statistics Office announced yesterday that output prices dropped by 0.4% in December compared to the previous month, but rose by 2.9% compared to the same period of last year. The monthly fall is attributed to the price cuts in other manufactured and petroleum products, the office said. Raw material costs also fell by 2.3% in December against November due to the 14.9% drop in crude oil prices and a 1.9% fall in imported parts and equipment prices. These figures indicate a positive outlook for inflation. Certain analysts believe that Bank of England will move down interest rates from the current level of 4.75%.