The index of consumer prices shot up by 1.9 percent last month from the previous month, mostly as a consequence of the surcharge on power, the NSO said this morning.

The index increased to 110.58 from 108.55 in June.

"This primarily reflected an increase of 8.2 per cent in the Housing, Water, Electricity, Gas & Other Fuels Index, mainly brought about by the increased surcharge rate," the NSO said.

The Restaurants and Hotels Index registered an increase of 5.8 percent, due to seasonal price rises in accommodation services. The Transport Index went up by 1.7 percent, mainly on account of higher air fares, while the Food and Non-alcoholic Beverages Index went up by 0.7 percent, due to higher prices of fruit, vegetables and bread.

Higher rates charged by retirement homes caused an increase of 0.4 percent in the Miscellaneous Goods and Services Index.

Seasonal reductions in the prices of garments caused the Clothing and Footwear Index to go down by 5.7 per cent.

Lower prices of furniture and furnishings caused the Furniture, Household Equipment and Routine Maintenance Index to decrease by 0.5 percent. The Health Index went down by 0.1 per cent, mainly due to lower prices of medical products, therapeutic appliances and equipment. Lower prices of printed material caused the Recreational and Culture Index to decrease by 0.1 percent.

In July, the 12-month moving average rate of inflation stood at 3.3 percent, whereas the annual rate of inflation stood at 5.6 per cent, the highest it has been at least for the past 10 years. In July last year the annual rate of inflation was -0.2