Mubasher: Producer price index (PPI) for the goods leaving UK factories rose at a slower rate of 1.2% in the year ended September, from 1.7% seen in the year to August, official figures showed on Wednesday.

The price growth for materials and fuels used in the manufacturing process were in deflation mode at -2.8% in the year to last September, down from -0.9% in the previous month, the Office for National Statistics (ONS) said.

The biggest upward contribution to the annual rate of output inflation came from price surges textile and leather product.

For the annual input inflation, crude oil costs made the biggest downward contribution during the reported period, the ONS said.

By 8:49 am GMT, the GBP/USD pair dropped by 0.48% to $1.2725, as the EUR/GBP pair climbed by 0.47% to GBP 0.8670.