LONDON, Dec 8 (Reuters) - British producer prices and costs fell in November as oil prices and petroleum product prices declined sharply, official data showed on Monday in a further sign that inflationary pressures are cooling rapidly.
The Office for National Statistics said output prices fell 0.7 percent on the month in November, in line with analysts' forecasts after October's record 1.0 percent drop.
That took the annual rate of output price inflation down to 5.1 percent last month from 6.7 percent in October, the lowest since December 2007.
Input prices fell 3.3 percent on the month, slightly more than the 3.0 percent fall predicted by analysts. The annual rate of input price inflation eased to 7.5 percent from 15.4 percent, the lowest since September 2007.
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 rates to come.
The ONS said a large fall in crude oil prices drove input prices lower in November, but that was partly offset by a rise in imported parts and equipment costs.
The ONS said the fall in output prices was driven by a sharp fall in petroleum products, which fell by a record 8.3 percent.
Core output prices, which exclude food, tobacco, beverages and petroleum industries, rose 0.2 percent on the month.