Annual inflation rate drops slightly

The annual rate of inflation dropped slightly in June, according to the Central Statistics office.

The annual rate of inflation dropped slightly in June, according to the Central Statistics office.

Consumer prices rose by 0.2 per cent last month, compared to 0.3 per cent in June 2006. As a result, the annual rate of inflation fell from 5 per cent to 4.9 per cent.

The most notable changes in the year were increases in housing, water, electricity, gas and other fuels (+22.6 per cent), alcoholic beverages & tobacco (+5.6 per cent), education (+4.8 per cent), restaurants & hotels (+4.3 per cent), and healthcare (+2.7 per cent).

There were decreases in the price of clothing and footwear (-3.7 per cent) and furnishings, household equipment and routine household maintenance (-2.1 per cent).

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The most significant monthly price changes were increases in the cost of transport (+0.8 per cent), restaurants & hotels (+0.7 per cent) and housing, water, electricity, gas and other fuels (+0.6 per cent). These were partially offset by a decrease in clothing and footwear (-1.7 per cent).

The monthly rise in the cost of transport was due to increases in air fares and petrol prices. Restaurants and hotel prices rose with higher prices for eating and drinking out and accommodation services.