Growth in Britain's factory activity slowed slightly last month, according to a survey today.
The Chartered Institute of Purchasing and Supply/NTC purchasing managers' index eased to 54.3 last month from a downwardly revised 54.7 in May. Analysts had predicted a reading of 54.8.
A reading above 50.0 indicates expansion, while anything below marks a contraction.
News of a marked pick-up in materials costs and signs that manufacturers remain confident about raising their prices will worry Bank of England policymakers, who have raised interest rates four times in less than a year to curb inflation.
The CIPS/NTC index of input costs jumped to a nine-month high of 65.7, while the output prices index eased slightly but remained close to a series high, at 56.8.
Financial markets showed little reaction to the data, which merely reinforced expectations that the bank will raise borrowing costs for a fifth time this week to 5.75 per cent.
There were signs that demand at home is subsiding, with the total new orders index slipping to 54.7 from 55.5 in May to reach its lowest since January.
But the strong pound, which last week popped back over $2, does not appear to have dented demand for British goods abroad, with the export orders index rising to 54.0 from 53.6.
Firms continued to take on staff last month, albeit at a slower pace than in May, with the employment index easing to 51.