Growth in raw material and factory gate prices slowed sharply in August and came in well below analysts' expectations, easing fears about inflationary pressures in the pipeline, official figures showed. The office for National Statistics revealed that input prices, on a seasonally adjusted basis, rose by 0.2 pct in August from July, down sharply from July's sharp rise of 2.5 pct, which was revised upwards from the provisional estimate of 1.8 pct. On an annual basis, input prices rose by 12.7 pct in August, again down on July's upwardly revised increase of 14.0 pct. The figures are well below analysts' expectations for a month-on-month rise of 2.1 pct and an annual increase of 14.1 pct. The rise in raw material prices between July and August mainly reflected price rises in crude oil and fuels, partially offset by price falls in imported parts and equipment and most other commodity groups, NS said. Crude oil prices rose by 8.5 pct between July and August, for a 51.4 pct increase on the year. In July, crude oil rose by 11.4 pct from June and by 60.7 pct on an annual basis. Imported parts and equipment prices fell by 1.0 pct between July and August, however, partly due to a 1.9 pct drop in imported electronic components. Meanwhile, growth in prices at the factory gate also slowed sharply after sharp rises in July. This evidence is likely to assuage fears at the Bank of England about rising inflationary pressures after figures last month showed the main CPI rate rising to 2.3 pct -- well above the BoE's target of 2.0 pct --, and could re-ignite speculation of further interest rate cuts in the months to come. The statistics office said output prices on a non-seasonally adjusted basis rose by 0.3 pct between July and August, below July's rise of 0.8 pct and well below analysts' forecasts for a 0.6 pct rise. The rise in output prices mainly reflected price rises in petroleum and other manufactured goods.