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LONDON (Reuters) - Reuters polls are forecasting that British factory input prices will show an 18.3 percent year-on-year increase In January, up from 15.8 percent a month earlier, when they are released on Tuesday.
That would be the highest level since 2008 - and it could spell trouble ahead for British manufacturing.
As the following graphic shows - bit.ly/2lHPptw - factory input prices have pretty much run with an inverse relationship to manufacturing investment in recent years, as tracked by the British Chambers of Commerce.
Statistically, there is a strong inverse correlation co-efficient above 0.7 a quarter ahead.
The input prices are being driven by the Brexit-led fall in sterling. Slumping manufacturing investment would be a second-round effect, according to the numbers.
Reporting by Jeremy Gaunt and Andy Bruce, editing by Larry King