Food prices sky-rocket as March inflation hits 4.5%, NSO figures show

Food prices sky-rocketed in March, pushing the annual inflation rate up to 4.5%, figures released by the National Statistics Office today show.

The annual inflation last month stood at 4.5%, an increase from the 4.2% registered in February, according to the Harmonised Index of Consumer Prices.

The annual rate compares inflation in a particular month with the same month of the previous year and could be influenced by one-off effects.

However, the 12-month moving average rate (which smooths one-off impacts and seasonal changes) for March stood at 1.7%, the highest it has been since 2020. The moving average has experienced significant increases since the start of the year, jumping from 1% in January to 1.7% in March.

The HICP confirmed that the largest upward impact on annual inflation in March was measured in the food and non-alcoholic beverages index. In March, the annual inflation rate for food stood at 8.7%.

Inflation was already on the rise in the last quarter of 2021 on the back of a post-COVID recovery that saw higher demand being suppressed by supply chain problems.

However, the Russian invasion of Ukraine and subsequent sanctions on Russia have made things worse with a significant impact on staple foods and energy.