Inflation alert after surge in world trade triggers record rise in cost of raw mater

[Watchman]

Inflation alert after surge in world trade
triggers record rise in cost of raw materials

By Daily Mail Reporter
Last updated at 4:34 PM on 5th January 2011

Fears of an imminent rise in interest rates escalated last night after a surge in manufacturing triggered record rises in the cost of raw materials.

Thanks to booming global trade, the cost of basic commodities, such as cotton and wheat, is now rising at a pace not seen for at least two decades, a survey released yesterday found.

The Chartered Institute of Purchasing and Supply revealed that input price inflation – the costs involved in producing finished goods, including energy and raw materials – in December shot to the highest level since its manufacturing survey began in 1992.

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