May, 1994.

Inflation over the 12 months to May, 1996 had been recorded at 2.7 per cent.

Yesterday Finance Minister Grant Gibbons welcomed the news "as further proof of the economy's improvement in price competitiveness''.

He added: "Maintaining low and stable price and cost inflation is a crucial part of the economy's path to restoring its competitiveness, especially in our key tourism industry where price competitiveness and value for money are crucial.

"It is now more crucial than ever that firms, workers, unions and others involved in setting wages and prices recognise the long-term consequences for inflation and competitiveness of the decisions that they make.'' The Statistics Department also announced yesterday that average consumer prices increased 0.4 percent between May and June.