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Inflation tops 4% in June

The annual rate of inflation climbed to 4.04 percent in June, the highest it has been for years, according to figures issued by the National Statistics Office show.

In June the Retail Price Index increased to 114.99 from 114.58 in May, an increase of 0.36 percent.

In June 2008, the Retail Price Index went up by 0.36 per cent over the previous month. The NSO said this primarily reflected an increase of 1.79 percent in the Transport and Communications Index, mainly due to price rises in fuels.

The Beverages and Tobacco Index went up by 0.69 percent, mainly on account of higher prices of served nonalcoholic beverages. The Recreation and Culture Index registered an increase of 0.28 percent after an increase in the prices of some stationery items. The Clothing and Footwear Index, increased by 0.25 percent, mainly on account of rises in the prices of garments.

A 0.20 percent increase in the Housing Index was reflected in costlier electricity equipment and other articles and materials related to house decoration.

The Water, Electricity, Gas and Fuels Index went up by 0.18 percent, mainly on account of the higher price of kerosene. Price increases in medical services caused an upward shift of 0.13 percent in the Personal Care and Health Index. The Other Goods and Services Index went up by 0.08 per cent, mainly due to price rises in non-durable household goods.

A decrease of 0.70 percent was recorded in the Food Index, mainly as a consequence of lower prices of fruits and vegetables.

The NSO said that In June the 12-month moving average rate of inflation stood at 2.94 per cent, whereas the annual rate stood at 4.04 percent.

In contrast, the annual rate of inflation in June last year was just 0.01 percent.

The last time the annual rate of inflation was higher over 4% was in January 02

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