Inflation dips — but some food prices spike
Planning a barbecue? Expect to pay more with leading price increases in grocery stores reported for soft drinks at 11.4 percent, frozen spare ribs at 8.9 percent and mayonnaise at 5.4 percent. These were some of the food price changes in grocery stores, which as a sector jumped 1.5 percent in January.
As a whole, consumers paid 1.8 percent more in January 2014 than they did a year ago for the basket of goods and services included in the Consumer Price Index (CPI), released yesterday by the Department of Statistics.
The level of inflation decreased 0.1 percentage point from the 1.9 percent measured in December 2013.
Between December 2013 and January 2014, the average cost of goods and services in the Consumer Price Index increased 0.1 percent.
The all-items index increased to 122.5 index points in January. This means that the basket of goods and services that cost $100 in April 2006 now costs $122.50.
According to the Department of Statistics, the health and personal care sector remained the largest contributor to the twelve-month rate of price increase. The annual increase in January 2014 was 7.7 percent, as prescribed drugs increased 5.5 percent year over year.
The food and transport and vehicles sectors also impacted strongly on the annual rate of inflation, according to the Department of Statistics release. Price shifts in these two sectors were two percent and 1.5 percent, respectively.
The rent sector increased 0.5 percent in January. Rental income from properties under rent control increased by 0.1 percent, while properties not subject to rent control increased by 0.7 percent.
The clothing and footwear sector inched up 0.7 percent in January. On average, the price of clothing accessories and women’s clothing increased 1.8 percent and 0.7 percent, respectively.
The tobacco and liquor sector increased 0.4 percent in January, following an increase of 0.1 percent in December. The average cost of spirits and wines increased two and 0.4 percent respectively during the month.
Health and personal care was static in January, although the average cost of self-prescribed medicines and household medical supplies rose by 1.3 percent.
In contrast, ladies hairstyling fell 1.0 percent. Pet costs and upkeep decreased 1.6 percent.
The household goods, services and communications sector was unchanged for the third consecutive month, while education, recreation and reading fell 0.1 percent in January following an increase of 0.1 percent in December.
Fuel and power declined 2.9 percent, and residential consumers paid 3.0 percent less for electricity than in December, while the transport and vehicles sector dipped 1.7 percent in January after a 2.6 percent rise in December.
The average price of overseas hotel accommodation dropped 10.0 percent, and in contrast, premium fuel prices rose 2.2 percent in January.