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UK manufacturers saw their costs drop unexpectedly last month, according to official figures which suggest that inflationary pressures may be easing.

Input prices, the amount manufacturers' pay for raw materials, fell by 0.5 per cent in July – the first fall since the start of the year, the Office of National Statistics (ONS) revealed.

A rise in the price of crude oil, partially offset by a 3.1 per cent drop in the price of imported metals over the month, drove the fall - which analysts said would be welcomed by the Bank of England.

The bank's policymakers have been concerned that rising input costs could force manufacturers to raise charges for their products, thus fuelling consumer price inflation and adding to pressure for a further interest rate rise.

However ONS figures show that factory gate prices rose by just 0.2 per cent between June and July, with the rise driven by a 0.5 per cent monthly increase in the price of food products made by manufacturers.

Global Insight chief economist Howard Archer said that the data was "relatively reassuring" overall and suggested that the strong pound was helping to contain the price of raw materials.

He added that the producer price data did not call for an early move to raise interest rates, but stressed that the benchmark rate was still likely to hit six per cent over the autumn as a result of other economic considerations.

"It is really the future strength of consumer price inflation, wages and consumer spending that will determine if, and more likely when, interest rates reach six per cent," Mr Archer explained.