Inflation increases to 4.9 per cent in January

The annual rate of inflation rose to 4.9 per cent in January from 4.2 per cent in December, according to the latest Consumer Price Index published today.

The most significant monthly price changes were increases in health (up 2.7 per cent), education (up 1.3 per cent), and catering services such as hotels, pubs and restaurants (up 1 per cent).

Health charges rose in January with increases in the cost of hospital charges, doctors’ fees, prescribed drugs, medical appliances and dentists’ fees.

The EU Harmonised Index of Consumer Prices fell by 0.2 per cent in the month, giving a 5.2 per cent annual rate, compared with 4.4 per cent in December 2001.

Prices of clothing and footwear fell by 3.1 per cent as a result of the traditional winter sales.