Inflation Falls Sharply To 1.1%

Consumer Prices in December, as measured by the CPI, decreased by 1.2% in the month. This compares to an increase of 0.1% recorded in December of last year.

As a result, the annual rate of inflation fell to 1.1%, down from 2.5% in November 2008.

The most notable changes in the year were increases in Alcoholic Beverages and Tobacco (which were up by 6.8%), Health (up 5.8%), Education (up 5.7%), Restaurants and Hotels (up 3.7%) and Food and Non-Alcoholic Beverages (up by 3.2%).

There were decreases in the prices of Clothing and Footwear (down by 6.5%), Transport (down 3.5%) and Furnishings, Household Equipment and Routine Household Maintenance (down 1.3%).

The annual rate of inflation for Services was 2.7% in December, while Goods decreased by 0.9% in the year.

According to the Central Statistics Office, the main factors contributing to the monthly change were falls in the prices of housing, water, electricity, gas and other fuels due to decreases in average mortgage interest repayments and home heating oil.