Inflation rate falls to 2.5%
Inflation fell to 2.5 percent for the month of August as the cost of healthcare and medicine continued to increase.The Consumer Price Index released yesterday revealed that fuel (12.8 percent increase) and food (2.4 percent) were among the biggest drivers behind the year-on-year rise in the cost of living.The annual rate of inflation fell from 2.8 percent in July.Self-prescribed medicines and prices for household medical supplies increased 1.2 percent month-on-month, while fuel was up 3.8 percent as the fuel adjustment rate rose 8.1 percent between July and August.The biggest increases in food prices were eggs (up 7.2 percent), lamb legs (4.5 percent) and cheddar cheese (four percent), with the sector up 2.1 percent as a whole.On the flipside the transport and vehicle sector fell by 4.2 percent as a result of lower airfares (minus 14 percent), overseas hotel accommodation (minus 10.1 percent) and gasoline (minus 3.2 percent).Rent-controlled properties rose by 0.2 percent on a monthly basis however housing units not subject to rent control and the average price of building materials were unchanged.The household goods, services and communications sector was up 0.2 percent for the month as the average cost of lawyers fees and moving services increased 2.1 percent and 0.9 percent respectively, while the average cost of household supplies advanced 0.7 percent.The education, recreation and reading sector also climbed 0.2 percent, reflecting a 1.6 percent rise in the average price of pet cost and upkeep. In contrast the price of boat fuel fell 3.2 percent.There was no cheer for smokers and drinkers as the tobacco and liquor sector crept up 0.2 percent driven by rises in the cost of beer (0.8 percent) and wine (0.2 percent).Clothing and footwear was similarly up 0.1 percent during August with the cost of dry cleaning rising 1.3 percent.