A fourth consecutive month of lower fuel and power prices kept the lid on inflation in January.

The fuel adjustment rate on Belco bills fell 11.1 per cent in the first month of the year, thanks mainly to a fall in the price of the diesel and heavy oil fuel that the utility’s generators burn.

Fuel and power prices overall plunged 3.7 per cent from December to January.

The Consumer Price Index, released today by the Department of Statistics, showed that consumers paid 1.7 per cent more in January than they did a year earlier for a range of goods and services.

The level of inflation dropped 0.1 percentage point from the 1.8 per cent measured in December.

The health and personal care sector was the largest contributor to the year-over-year increase, rising 7 per cent. The major driver in this sector was the cost of insurance premiums and prescribed medicines.

Food prices rose 2 per cent year over year, while prices in the household goods, services and supplies sector were up 2.6 per cent.

After two months of decline, food prices rose by 1.2 per cent between December and January, with notable rises in the cost of red grapes (7 per cent), pork loin rolls (6.4 per cent) and evaporated milk (6.3 per cent).

The transport and foreign travel sector also saw a 1.6 per cent fall in prices between December and January. Airfares fell 8.2 per cent, while the average cost of cycle repair and maintenance fell 6.6 per cent.