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UK producer price inflation surged to the highest level in nearly a decade in August, suggesting the CPI could soon rise further from the near-nine-year high of 3.5% recorded last month.
Output prices surged by 5.9% from 5.1%, the fastest pace since November 2011, the Office for National Statistics said, while core output inflation accelerated to 5.3% from 4.2%, the highest rate since November 2008. Input price inflation surged to 11.0% from 10.4% in July, the fastest pace since October 2008.