U.K. manufacturers have weathered Brexit like a champion, turning in a burst of growth since the fallout from June's referendum abated. A weakened pound and long stretch of cheap oil have helped producers stay competitive.
But a squeeze is undeniably in train. The latest official producer price figures show that raw material costs jumped an annual 12.2 percent in October.
Energy costs were the biggest contributor to higher input prices.
Here, the weak pound is proving a drag, chipping away at the benefit from lower levels of dollar-denominated oil.
The question for British factories is their capacity to absorb these higher costs, or pass them along at the factory gate. While output prices haven't risen nearly as much, climbing just 2.1 percent, that's still the fastest pace since April 2012.
The overall report is a bad omen for consumer price inflation. The trials of the Toblerone chocolate bar suggest shoppers won't be able to avoid the pinch.
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