The rate of inflation fell in January, dropping to 1.4 per cent from 1.5 per cent measured in December 2014, as lower global oil prices dampened increases in the cost of living.

The Consumer Price Index (CPI) report found that fuel and power costs fell for the second consecutive month, dipping 2.5 per cent from December, as consumers paid 7.7 per cent less for electricity.

The report, released on Friday, stated that between December 2014 and January 2015, the average cost of all goods and services was static with the all-items index remaining at 124.3 index points.

“This means that the basket of goods and services that cost $100 in April 2006 now cost $124.30,” it added.

The largest contributor to the year-over-year increase in the CPI was the health and personal care sector, which saw costs rise 7.2 per cent year over year. The food sector and the household goods, services and communications sector also impacted strongly on the annual rate of inflation, said the report.

Price rises in these two sectors were 3.7 per cent and 1.4 per cent, respectively.