Factory gate prices fell in July at their sharpest annual rate since November 2001, while annual input price inflation fell to its lowest rate in almost 23 years, according to new data greeted by analysts as signalling a significant fall in consumer price inflation.

A 41 per cent fall in the price of crude oil was one of the main drivers behind the 12.2 per cent annual fall in input prices, which fell by a bigger-than-expected 1.4 per cent between June and July. A 3 per cent fall in the price of home produced food, particularly potatoes, in the month was also influential.