Rising petrol, chemicals and food prices have sent factory gate inflation to the highest rate for nearly 12 years
Average petrol prices have just passed £1 a litre
Annual output price inflation rose to 3.8% last month, up from 2.8% in September and the highest rate since December 1995, official figures showed.
Output prices, or factory gate prices, measure how much manufacturers charge when they sell their products.
Analysts say the big rise in output inflation may make the Bank of England less likely to cut interest rates.
"The Bank of England is worried about inflationary pressure and this sort of data will perhaps give them reason to pause before cutting rates in the new year," said George Buckley at Deutsche Bank.
Annual inflation of input prices, which measure the amount that manufacturers have to pay for materials and fuel, jumped to 8.5%, up from 6.5% in September and the highest rate since July 2006.
"UK PPI inflation data (is) coming in on the high side of expectations on both the input and output side, but the source of the surprise is common to both," said Alan Clarke at BNP Paribas.
"Higher energy and food prices (are) the most likely sources," he explained.
The focus will now shift to the higher-profile consumer price inflation figures, due out on Tuesday, for any further signs of inflationary pressures building in the economy.