Retail price index shows inflation at 0.3% in February

In February 2015, inflation was at 0.3% – the lowest rate since 1985 – according to the Retail Price Index.

In a media statement, the government said that on average during the past administration, inflation reached 2.6%, or nine times the rate seen over the past year.

The National Statistics Office reports that in February, the annual rate of inflation as measured by the Retail Price Index stood at 0.71%, while the 12-month moving average rate was 0.29%.

The main upward impacts were recorded in the Food Index (0.88 percentage points), the Beverages and Tobacco Index (0.16 percentage points) and the Other Goods and Services Index (0.15 percentage points). This was mainly due to higher prices for vegetables, cigarettes and insurances respectively.

The largest downward impacts on annual inflation were brought about by the Water, Electricity, Gas and Fuels Index (-0.64 percentage points), the Transport and Communication Index (-0.07 percentage points) and the Household Equipment and House Maintenance Costs Index (-0.05 percentage points). This was mainly due to lower electricity rates, a price reduction in fuels and discounted furniture prices.

Between lower inflation rates and pay increases, the average worker has €310 extra in his pocket per year, the government said, whereas under the previous government, the worker made a loss of €70.

“The government remains committed to keeping inflation down, particularly in essential products and services,” the statement said. “Businesses will soon benefit from lower energy tariffs and fuel prices will continue to go down in the coming months.”