Official figures show that British manufacturers' costs unexpectedly fell at their sharpest monthly pace in 18 months in July, though they were still nearly a third higher than a year ago.
The Office for National Statistics said input prices fell 0.6% on the month. Analysts had expected a 1% rise. But the annual increase was 30.1%.
The figures use average prices over the month, meaning the sharp slide in oil prices towards the end of July has yet to be fully factored in.
Output prices rose by a weaker than expected 10.2% on the year, although that was still the highest since the series began in 1986. Core output prices, which exclude food, drink, tobacco and petroleum, rose 0.3% on the month to take the annual rate up to 6.6%. It was last higher in May 1981.
Separately, the ONS released data on trade which showed the goods trade gap with the rest of the world widened by more than expected in June to £7.68 billion from £7.4 billion.
