Factory gate inflation hits record high

LONDON (Reuters) - Factory gate prices and producers' costs rose at a record pace in April, official statistics showed on Monday, as fuel and food costs soared.

The Office for National Statistics said that output prices rose an unadjusted 1.4 percent on the month in April, taking the annual rate up to 7.5 percent. Both rates were the highest since the series began in 1986.

Input prices rose an adjusted 2.4 percent on the month, taking the annual rate up to 23.1 percent -- also the highest since records began.

Home produced food input prices soared a record 32.3 percent on a year ago in April and crude oil rose 62.6 percent.

The figures are likely to fuel concerns about rising inflation rates even as the economy slows, adding to the Bank of England's policy dilemma.

The Bank is expected to cut interest rates to 4.75 percent in June but signs that manufacturers are passing on rising costs to customers could put those expectations in doubt.