Falling fuel and power prices have helped drive down inflation to 1.4 per cent.

Although prices in the sector were static during August, a year-on-year drop of 10.5 per cent, with cheaper electricity a major factor, impacted the headline rate. Between July and August, inflation fell 0.5 per cent, while the average cost of goods and services was down 0.2 per cent. The consumer price index stood at 100.4 in August. It showed food prices continued a slow upward trend, rising 0.3 per cent since July.

According to the Department of Statistics, there were notably higher prices for frozen spare ribs, carrots and evaporated milk in August. In the rent sector there was a monthly rise of 0.1 per cent in rental costs, and the same fractional price increase in the tobacco and liquor, and health and personal care sectors.

However, prices in the transport and foreign travel sector fell 1.6 per cent, with less expensive overseas vehicle rental costs cited as a factor in the year-on-year drop, which was also measured at 1.6 per cent.

Prices in the education, recreation, entertainment and reading sector fell 0.2 per cent.