Inflation hits three-year high

Inflation last month rose to 4.32 per cent, the highest for the past three years, mainly as a result of the explosion in the prices of utilities.

Figures issued by the National Statistics Office for March 2008 and March 2009 show that water, electricity, gas and fuels rose by 45.93 per cent over the period.

Food and beverages, and tobacco rose by 11 and 5.4 per cent respectively.

Compared to February, the retail price index of March rose by 0.77 per cent, mainly because of a seasonal 5.6 per cent increase in clothing and footwear. Food also rose by 1.6 per cent, mostly because of costlier vegetables.

Higher rents and more expensive electrical equipment brought about a rise of 0.2 per cent in housing.

Hairdressing services pushed personal care and health up by 0.2 per cent and costlier house decorations, household equipment and house maintenance were up by 0.19 per cent.

Other goods and services rose by 0.15 per cent because of more expensive non-durable household goods and beverages and tobacco rose by 0.09 per cent because of higher wine and non-alcoholic drink prices.

However, transport and communication fell by 0.19 per cent, mainly because of lower fuel prices, and recreation and culture by 0.12 per cent because of cheaper horticultural products.