Price index, inflation, decline

The Harmonised Index of Consumer Prices went down to 111.47 last month from 111.63 in June 2009, the NSO said today.

Inflation showed a steeper decline. In July, the twelve-month moving average rate of inflation stood at 3.9 percent from 4.3 percent in June, whereas the annual rate of inflation stood at 0.8 percent from 2.8 percent in June. The annual rate of inflation this year peaked at 4% in April.It was 5.7 percent in October.

The 0.1 percent drop in the price index primarily reflected a decline of 7.6 percent in the Clothing and Footwear Index due to seasonal price decreases in garments. The Food and Non-alcoholic beverages Index went down by 2.2 percent mainly due to price decreases in fruit.

Lower prices of recreational and sporting services caused the Recreation and Culture Index to go down by 0.4 percent.

The Alcoholic beverages and Tobacco Index went down by 0.1 per cent due to downward shifts in the price of spirits. The Furniture, Household Equipment and Routine Maintenance of the House Index also registered a decrease of 0.1 per cent, mainly on account of lower prices of household textiles.

The Transport Index went up by 3.8 per cent, mainly due to higher prices of fuels. Higher prices of accommodation services caused the Restaurants and Hotels Index to go up by 0.8 percent. The Housing, Water, Electricity, Gas and Other Fuels Index registered an increase of 0.6 per cent, mainly due to higher prices of services for the maintenance and repair of dwellings. Upward shifts in the prices of certain jewellery items underlay an increase of 0.3 per cent in the Miscellaneous Goods and Services Index.

The Health Index went up by 0.2 per cent due to an increase in medical and paramedical fees.