Inflation Falls To 4.8%

Consumer Prices in August increased by 0.5%. This compares with an increase of 0.7% in August 2006 and as a result, the annual rate of inflation fell to 4.8%, down from 5.0% in July.

The E.U. Harmonised Index of Consumer Prices (HICP) increased by 0.4% in the month, compared with an increase of 0.8% in August 2006. As a consequence, the annual rate of inflation, as measured by the HICP, decreased from 2.7% in July to 2.3% in August.

The most notable changes in the year were increases in Housing, Water, Electricity, Gas and Other Fuels, Alcoholic Beverages and Tobacco, Education, and Restaurants and Hotels.

There were decreases in the prices of Clothing, Footwear and Furnishings, Household Equipment and Routine Household Maintenance, which accounted for the overall fall in inflation.

Clothing & Footwear increased due to the recovery in prices following the conclusion of the traditional summer sales.

Communications costs increased with an increase in fixed line telephone charges including line rental.

Housing, Water, Electricity, Gas & Other Fuels costs increased with higher rents and average mortgage interest repayments.