Prices of fuel and material used by non-food manufacturers increased during October, the Novemebr 15th issue of Doard of Trade Journal reported. The provisional index of wholesale prices (1954 - 100) rose to 104.8 compared with an average for the thrid quarter of 104.2, and 102.5 in the fourth quarter of 1962, Higher prices for raw wool accounted for much of the rise in the textile industries, which more than offset the slight fall during the third quartor, Prices of materials used in the construction industry and in house building havo gradually increased during the year, and are. now some 1.5% up on one year to one of 7,6%, a high figure. It is difficult to determine all the factors invo lved but it is clear that oa substantial part of the rise is accounted for by the recovery in production levels.
The index for the food sector increasod sharply during October, and was some 3.5% up on the third quarter. Two-thirds of this increase was caused by higher sugar prices while half the remainder was due to higher prices for grain resulting from strong international demand (mainly the Russian purchases), rising freight rates and a smaller domestic wheat crop.
Food output prices rose nearly 2% in October, bringing the index up to 117.4 compared with 113.5 in the third quafter and 112,}3 in the fourth quarter of last year. Onoe again higher prices for refined sugar were largely respons ible for the increase,
Whilst too much cannot be made from one month's figures, it seems likely that the Tory Government will face, on top of everything alse, the beginnings of an inflationary pressure in the coming months.