Inflation drops below Eurozone average, but price index jumps

The annual rate of inflation dropped below the euro area average in April while the consumer prices index rose by 2.1 per cent from the previous month, figures issued today by the NSO show.

In April, the annual rate of inflation was 2.4 per cent, the lowest it has been since October. The annual inflation rate in the euro area was 2.8 percent.

In April the Harmonised Index of Consumer Prices went up to 115.11 from 112.69 in March.

The increase primarily reflected a seasonal increase of 9.6 per cent in the Restaurants and Hotels Index due to accommodation services. Higher prices of garments caused the Clothing and Footwear Index to go up by 5.0 per cent. The Furniture, Household Equipment and Routine Maintenance of the House Index moved up by 2.3 per cent due to price increases for furniture and furnishings.

Higher tuition and school fees caused the Education Index to go up by 1.7 per cent. The Transport Index registered a rise of 0.8 per cent, mainly on account of costlier fuel prices. An upward movement in the price of package tours underlay an increase of 0.6 per cent in the Recreation and Culture Index.

The Housing, Water, Electricity, Gas and Other Fuels Index rose by 0.3 per cent, mainly as a result of higher fees charged for services related to the maintenance and repair of dwellings. An increase of 0.2 per cent was recorded in the Miscellaneous Goods and Services Index, mostly on account of costlier jewellery items.

The NSo said the Health Index edged up by 0.1 per cent due to higher fees for hospital services.
The Communication Index registered a decrease of 0.1 per cent due to cheaper mobile telephony equipment and services.