Factory-gate inflation rise compounds BoE's woe

Producer prices in the UK leapt to 6.2% for the year to March, the highest rate since 1991.

The climb increases the policy dilemma facing the Bank of England, which last Thursday cut rates in a bid to ward off an economic slowdown.

Factory-gate inflation, a measure of output prices for manufacturers, rose by half a point in March from 5.7% in February. The Office for National Statistics, the government-run body which measures inflation in the UK, said that the rise mainly reflected the rise in

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