A method for manufacturing bodies formed from insulated soft magnetic metal powder by forming an insulating film of an inorganic substance on the surface of particles of a soft magnetic metal powder, compacting and molding the powder, then carrying out a heat treatment to provide a body formed from insulated soft magnetic metal powder the method comprising: compacting and molding the powder; then magnetically annealing the powder at a high temperature above the Curie temperature for the soft magnetic metal powder and below the threshold temperature at which the insulating film is destroyed in a non-oxidizing atmosphere, such as a vacuum, inert gas, or the like; and then carrying out a further heat treatment at a temperature of from 400° C. to 700° C. in an oxidizing atmosphere, such as air, or the like.