Factory gate prices hit 14 month high

There was a mixed picture on the inflation front, with the price of goods leaving the factory hitting a 14 month high, but growth in input prices slowing by more than expected. Factory gate inflation rose from 3.8% in January to 4.1% in February, but this was in line with forecasts. Input prices were 6.9% higher last month, down from 7.7% in January and lower than predicted. Analysts said the figures did not alter expections that the overall inflation figure was likely to remain above the Bank of England's 2% target for some while, before falling back in response to the amount of spare capacity in the economy. With all eyes on the US non-farm payrolls later today the FTSE 100 is currently 22.22 points higher at 5549.38.