Britain's manufacturers started to feel the effects of rising prices last month after input cost inflation surged to a record high.

Intensifying price pressures saw average purchase prices jumping at the steepest rate in the Markit/CIPS UK Manufacturing purchasing managers' index's 25-year history on the back of rising commodity prices and the weaker pound.

Efforts to pass on part of the increase in costs led to a sharp rise in selling prices, the survey showed, with output charges rising at nearly the fastest pace on record.

But the industry was still able to notch up output growth in January, with the closely watched survey showing a reading of 55.9, lower than 56.1 in December, but in line with economist expectations.

A reading above 50 indicates growth.

Rob Dobson, senior economist at IHS Markit, said: 'Over 55% of companies link rising costs to the exchange rate.

'However, we're also seeing more companies reporting domestic supplier price hikes resulting from the rising cost of commodities such as fuel, oil, plastics and steel.

'With cost pressures increasingly feeding through to higher selling prices at factories, it looks inevitable that consumer price inflation will rise further in coming months.'

Mr Dobson said that the real question now is whether pressure from cost inflation will drag on manufacturing growth in the months ahead, but noted that companies seem 'fairly sanguine' on the issue, given that optimism among businesses is at an eight-month high.

'Taken alongside robust output growth, rising new order inflows and job creation, all signs are pointing to a solid contribution to UK GDP from manufacturing during the opening quarter of 2017.'

The pound rose on the news to trade 0.3% higher against the US dollar at $1.261, and up nearly 0.4% versus the euro at €1.168.