Inflation and the harmonised index of consumer prices dropped last month, according to figures issued yesterday by the National Statistics Office.

The annual rate of inflation was shown as having dropped to 3.1 per cent, the lowest in just over a year, compared to an annual rate of five per cent in December.

The 12-month moving average rate of inflation was 4.6 per cent, as compared to 4.7 per cent in December.

The NSO said the index of consumer prices declined by 2.2 per cent in January over the previous month, primarily reflecting a 19.5 per cent drop in the clothing and footwear index as a result of seasonal price reductions.

Lower fuel prices caused the transport index to go down four per cent. There was also a 2.3 per cent drop in the restaurants and hotels index and a 0.7 per cent decrease in the recreation and culture index.

The health index rose by 0.6 per cent on account of higher prices on medical and paramedical services.