The prices of goods leaving the factory gate continued to fall in March. The Central Statistics Office wholesale price index shows that manufacturing prices in March were 0.2 per cent lower than in February and 1.4 per cent lower than a year before.

This contrasts with the rate of consumer price inflation, which rose to 5.1 per cent in March, mainly due to increases in interest rates and the cost of services.

The downward trend was influenced by cheaper high-technology goods, although some other goods, such as food products, saw modest inflation.

Prices for office machinery and computer products fell in March by 1.5 per cent below February levels, and were 11.7 per cent lower than in March 2006.

Electrical goods prices were flat in March and 1.6 per cent lower than a year ago.

For the broader category of manufacturing items excluding food, prices were down 0.3 per cent in March and 2.1 per cent lower year-on-year.

Food prices were flat, but 1.5 per cent higher than last year.