The rate of inflation dropped slightly last December to 1.6 per cent, 0.1 percentage points down from November.

The price change refers to the standard basket of goods and services measured by the consumer price index compared to the same period in 2015.

A basket of goods and services that cost $100 in April 2015 now costs $102.10.

The transport and foreign travel bounced back from a 2.8 per cent decrease in November with a 1.3 per cent increase in December.

The average cost of automotive fuel and cycle fuel rose, up 3.3 per cent and 3.2 per cent respectively.

The cost of tobacco and liquor fell 0.4 per cent in December, with the average cost of spirits, discounted over the Christmas period, falling 1.1 per cent.

The price of fuel and power fell for the third consecutive month, dropping 3.1 per cent over the month. The fuel adjustment rate decreased by 9.5 per cent over the period.

The cost of food dropped for the second successive month, down 1.3 per cent in December, put down to drops in the price of cookies, non-alcoholic drinks and fresh and frozen lamb.

The rent sector increased slightly, up 0.1 per cent after three months of no movement.

The cost of properties subject to rent control increased by less than 0.1 per cent.

The education, recreation, entertainment and reading sector also rose by 0.1 per cent in December after a 0.2 per cent decrease the previous month.

Health and personal care, clothing and footwear and household goods, services and supplies were all static compared to last November.

The average cost of detergents and bleaches increased by 1.1 per cent, but that was offset by a decrease of 0.5 per cent in the average cost of cleaning materials.