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Output prices UK producers increased by 0 6pc driven by fuel, food and chemical products after staying flat in September, said the national statistics office.

Monthly increase greater than expected was the largest since April and pushed the annual rate of 4pc, compared with an increase of 3 8pc in the year to September, under a new classification of the data.

Economists had forecast that the rate would be stable 4 4pc in the old system of classification, with volatile components such as ferraille.Les raw materials costs for producers also has increased more than expected, with 2 1pc-on-month.

Analysts said that the data will discourage more responsible for pumping more money into the economy through quantitative easing (QE) Bank.

UK inflation was on target for months now, stick to 3 1pc in September.

"The problem goes no further, and with the increase in VAT and wholesale commodity prices will were the roof... this window for EQ at the United Kingdom is gradually disappear," said Marc Ostwald, strategist at the monument of securities.

However, others argue companies would struggle to pass price increases, reducing the threat of inflation.

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