INSTANT VIEW - June PPI output prices fall fastest since 01

LONDON (Reuters) - Factory gate prices fell in June at their sharpest annual rate since 2001, faster than expected, while producers' costs declined at their fastest rate since 1997, official data showed on Friday.

The decline in input prices, however, was weaker than expected and crude oil prices have shot up 14.3 percent on the month, which may starting putting upward pressure on costs in the coming months.

KEY POINTS

- Lowest annual rate of PPI output prices since December 2001

- Lowest annual rate of core PPI output prices since June 2004

- Lowest annual rate of PPI input prices since April 1997

- Biggest monthly rise in crude oil prices since January 2005

ECONOMISTS' VIEWS

PHILIP SHAW, INVESTEC