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Revenues increased but not fast enough to account for the input inflation.
If the frost hits and damages the crop, then we would expect increased input inflation for the food manufacturers, potentially dampening the earnings outlook," Driscoll said.
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Input price inflation hit a five-year high.
However, input price inflation increased from 1.3% in May to 2.1%.
The PMI report showed input price inflation accelerated to a 33-month high in August, linked to the weak pound and rising fuel and labour costs.
Input price inflation fell to its slowest pace since August 2017.
Input price inflation continued to ease, although remained sufficiently strong for businesses to raise output charges.
All businesses will benefit from the reduction in input cost inflation.
Input price inflation weakened to an 11-month low, although output prices rose for the fifth straight month.
Meanwhile, higher food, fuel and labour costs helped to lift input price inflation to well above the UK average.
According to the survey, the only "bright spot" was a "further reduction in input cost inflation to the weakest for over two-and-a-half years".
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