Inflation hits 3.2% in February
The inflation rate rose to 3.2 percent in February - its highest level since September - according to Government figures released on Friday.As measured by the increase in prices in the basket of goods and services used for the Consumer Price Index (CPI), the inflation was a full percentage point higher in February than the month before.Last September’s rate of 3.4 percent was the only time that inflation edged above three percent last year.Comparable measures of inflation show February rates of 2.1 percent in the US, 2.2 percent in Canada and 5.5 percent in the UK.Prices in the health and personal care sector were the biggest driver of inflation as they were up 7.6 percent compared to February 2009, while fuel and power sector prices rose 8.1 percent.Clothing and footwear prices rose 5.6 percent over the 12 months, while food prices climbed 2.7 percent.The 1.6 percent rise in rents was also a significant inflation driver, as the sector is heavily weighted in the CPI basket.The most notable price increase between January and February was that of the transport and vehicles sector, which climbed 3.4 percent on the back of rocketing fuel prices, which led to higher airfares.Food prices were up 0.8 percent from month to month, driven by pineapples (up 6.5 percent), roasting chickens (up 3.7 percent) and pasta (up 2.8 percent).A 1.6 percent month-to-month increase in the cost of wines and a 0.4 percent rise in beer prices drove a 0.7 percent increase in tobacco and liquor sector prices.The statistics also noted a substantial decrease in the cost of flat screen televisions (down 3.7 percent) and DVD players (down 4.7 percent) between January and February, which drove a 0.1 percent fall in the education, recreation and reading costs.