The rate of inflation hit 4.9 percent for December 2008 compared to the previous year with consumers continuing to feel the economic pinch, as borne out by the latest statistics released by Government.

And the average rate of inflation for the year was 4.8 percent, one percent higher than in 2007.

The Department of Statistics' Consumer Price Index revealed that despite the rate of inflation steadily declining from its peak of 5.9 percent in September last year and the cost of goods and services dropping by 0.7 percent between November and December, certain sectors, most notably food were still on the increase.

In fact, shoppers were made to fork out more in the supermarket as the food sector rose 9.1 percent over the 12-month period, driven by increased prices of white and whole-wheat flours, pasta and fresh vegetables. Food prices were up 0.1 percent in December compared to November, with reductions in bakery, cereal, meat and dairy product costs offset by a rise in prepared meals bought in restaurants and grocery stores.

Motorists also felt the thin end of the wedge at the pumps, while tenants experienced an increase in rent, with the fuel and power and rent sectors climbing by 27.3 percent and 2.6 percent respectively. On a monthly basis, however, fuel and power pricing fell 3.5 percent in December in line with the decrease in the cost of electricity, while the fuel adjustment clause declined for the first time last year by seven percent.

The rent sector, meanwhile, edged up 0.3 percent for the month, mainly down to the 0.4 percent rise in rent-controlled properties, with rental unit not subject to such control advancing 0.2 percent over the same time.

Smokers and drinkers, similarly saw an increase in the cost of their favourite brands, as the tobacco and liquor sector climbed 0.5 percent, with wine the biggest contributor, up 1.8 percent.

But gas prices dipped sharply in December as premium and mixed blends fell by more than nine percent, while the average cost of foreign travel, including both airfare and hotel accommodation, dropped for the month.