Cost inflation hits record high

COST inflation in Scotland rose to the highest rate since records began in April, new economic data has shown.

The Royal Bank of Scotland’s purchasing managers index data revealed that output declined for the first time since June 2003 and new orders fell at a faster rate than in March.

David Fenton, head of microeconomics for RBS, said: “Scotland made a disappointing start to the second quarter, with a broad-based decline in business activity and the highest cost inflation since records began.

“Energy, metal and food prices were all in the ascent. Output prices also rose sharply, which suggests that companies retain a reasonable degree of pricing power.”

The survey also showed that total private sector employment in Scotland had fallen for the first time in more than three years.