Annual inflation rate slows to 1.7%


Supermarket price wars and the falling cost of fuel helped push the annual inflation rate down to 1.7 per cent, according to new figures published today by the Central Statistics Office.

The Consumer Price Index (CPI) rate of inflation fell to 1.7 per cent last month from 1.9 per cent in June 2011.

However, consumer prices were virtually unchanged between May 2012 and June 2012, as an increase in the price of airfares and hotel accommodation offset decreases in the price of fuel and household equipment. Prices decreased just 0.2 per cent in June.

The most notable changes in the year were the price of education, which increased 9.4 per cent, the price of transport which rose 5.7 per cent, and the price of alcoholic beverages and tobacco which were up 4.3 per cent. Transport rose mainly due to an increase in airfares, but was partially offset by decreases in petrol and diesel prices.

Communications prices decreased 1.2 per cent while recreation and culture prices were down 1.6 per cent.