Lower inflation despite increase in food and beverage prices

In the month under review, the annual rate of inflation stood at 0.6 per cent. A year earlier the annual rate was 0.8 per cent.

The largest upward impacts on annual inflation were brought about by the Food and Non- alcoholic Beverages Index (0.4 percentage points), the Restaurants and Hotels Index (0.4 percentage points) and the Miscellaneous Goods and Services Index (0.2 percentage points).

This was mainly due to higher prices of vegetables, restaurant services and fees charged by elderly homes respectively.

The main downward impacts were recorded in the Housing, Water, Electricity, Gas and Other Fuels Index (-0.7 percentage points), the Transport Index (-0.1 percentage points) and the Furniture, Household Appliances and Routine Maintenance of the House Index (-0.1 percentage points).

This was mainly due to lower electricity rates, cheaper fuel and discounted furniture items.

The twelve-month moving average rate was 0.7 per cent.