Annual input price inflation at factory in the U.K. jumped by the most in over two years in the first month of 2011 on surging energy costs, raising a fresh wave of concern over the central bank’s decision to keep interest rates at a record low, according to The Daily Telegraph. On Friday, the Office for National Statistics reported that input prices at factories rose 13.4% year-over-year in January, which surprised economists forecasting for no change from December’s 12.5% annual inflation rate. The report also revised upwards December inflation to 12.9%.

The ONS data showed that the rapid increase in input prices pushed factories to pass on rising costs, raising their own price s by 1% during January alone, which was double the forecast from analysts. The hike in output prices moved the annual output price inflation to 4.8%, which is the highest since May. Howard Archer of IHS Global Insight called the report “nasty news” and said the data would keep “pressure on the Bank of England to raise interest rates sooner rather than later.”

Click here to read the story on factory prices from The Daily Telegraph.

Click here for coverage of economists’ reaction from The Daily Telegraph.