Food and drink costs rise again in August

For the second month running, food and drink prices rose by more than four per cent in August, official figures show.

The food index went up by 4.1 per cent over the same month last year. A similar annual increase was registered in July.

The beverage index, which includes tobacco, jumped 4.7 per cent in August, on the back of a five per cent annual increase in July.

Both indices registered increases compared to the previous month. The National Statistics Office blamed fresh fish for the higher prices.

The figures form part of the retail price index, which is used by the authorities to calculate the statutory wage increase announced in the Budget.

The index in August registered a 2.2 per cent increase compared with 2011 and edged up by 0.3 per cent when compared to the previous July.

However, the 12-month moving average inflation rate (calculated by averaging inflation over the previous year, which helps to smooth out seasonal changes) continued its downward trend and was 2.3 per cent in August.