Official figures show that British producer prices and costs fell in November as oil and petroleum product prices declined sharply.
The data were a further sign that inflationary pressures are cooling, but the costs of some imported materials rose, suggesting a weaker sterling may be having an impact.
The Office for National Statistics said output prices fell 0.7% on the month in November, in line with analysts' forecasts after October's record 1% drop. That took the annual rate of output price inflation down to 5.1%, the lowest since December 2007.
The ONS said the fall in output prices was driven by a sharp fall in petroleum products, which dropped by a record 8.3%. Core output prices, which exclude food, tobacco, beverages and petroleum industries, unexpectedly rose 0.2% on the month, partly driven by higher transport costs.
The figures are likely to reinforce the Bank of England's view that headline consumer price inflation will fall sharply in the coming months, with markets expecting further interest rate cuts to come as Britain slides into recession.
Input prices fell 3.3% on the month, mainly due to a large fall in crude oil prices.
