The latest drop in oil prices – which could soon be negated by the ongoing violence in the Caucasus – may have handed those in procurement some much-needed respite but, here in the UK, producer prices are still causing a considerable headache.

According to figures published today, manufacturing input costs fell in July, helped in no small part  by oil's slide, but producer prices rose 0.4 per cent in the last month.

This rise, which means that factory gate prices are now over 30 per cent higher than they were a year ago, comes as figures from the Office for National Statistics showed that the price of goods rose a further  0.8 percent to 10.8 per cent in the year to July. 

So, while oil prices fall, cost increases look set to continue as a top concern – and for procurement operations that stopped hoping for the best and began preparing for the worst a long time ago, the latest news will come as no surprise.