Soaring petrol and food costs saw factory gate prices rise at their fastest rate for nearly 12 years last month.

The fresh evidence of the inflation risks over-shadowing the economy came after a stronger-than-expected 0.6 per cent kick in output prices between September and October, according to the Office for National Statistics.

The jump meant manufacturers' prices have risen 3.8 per cent in the year to October - the highest rate of increase since December 1995.

A 2.4 per cent surge in petrol prices over the month after increased fuel duties and a 1.4 per cent uplift in food products - driven by higher wheat prices and more expensive dairy products - fuelled the increase.

The figures will add to the underlying inflation concerns among Bank of England policymakers, who last week voted to hold interest rates at 5.75 per cent despite evidence of a cooling housing market and easing high street sales.

Oil prices approaching the $100 a barrel mark have added to the inflationary pressure, reflected in manufacturers' input costs, which have jumped by 1.8 per cent in October and 8.5 per cent over the year.

Howard Archer, Global Insight's chief UK economist, said the ONS figures were likely to add to the Bank's "wariness" over an early cut and said rates were likely to be held at current levels until February.

He said: "The figures are hardly the most pleasant set of data for a central bank which is under pressure to cut interest rates to dilute the risk of a sharp economic slowdown."

The ONS said the monthly increase in output prices would have been even stronger - 0.2 per cent higher - if manufacturers had passed on in full the fuel duties that came into force on October 1.

And food product prices have now risen by six per cent in the last year - the highest rate of increase in more than 14 years - after soaring bread and milk costs, the ONS added.

The twin drivers of the output price rise offset small declines in electrical, tobacco and alcohol products.

The Bank's inflation benchmark, the Consumer Prices Index, is expected to be below the two per cent target in the latest ONS figures for October out today.