Annual inflation rate tempered for August
Inflation slowed its upward trajectory in the year to August, in figures released by the Government.
The Ministry for the Cabinet Office released the August 2021 Consumer Price Index (CPI) from the Department of Statistics.
The ministry said that during August 2021 consumers paid 1.6 per cent more than they did in August 2020 for the basket of goods and services.
This level of inflation dropped 0.6 percentage points from the July 2021 annual inflation rate of 2.2 per cent, the report said.
The Transport and Foreign Travel sector continues to be the largest contributor to the 12-month increase in the CPI (+9.1 per cent). The main contributors to the increase were the average cost of airfares (+17.5 per cent) and premium fuels (+15.3 per cent), respectively.
Meanwhile, the Health and Personal Care sector and the Household Goods, Services and Supplies sector also had a strong impact on the annual rate of inflation, as price shifts in both sectors measured 1.9 per cent.
Between July 2021 and August 2021 the average cost of goods and services did not change.
Additional areas of note between July and August 2021 are as follows:
• The Transport and Foreign Travel sector declined 1.8 per cent. The drop in this sector was attributed to the decrease in the average cost of overseas car rentals.
• The Rent sector was up 0.6 per cent as the average cost of properties not subject to rent control and properties under rental control advanced 1.2 per cent and 0.1 per cent, respectively.
• The Food sector increased +0.5 per cent for the month. The main items contributing to the rise was the average price of imported lettuce (+11.0 per cent), frozen spare ribs (+5.4 per cent) and cantaloupes (+5.2 per cent).
• The Tobacco and Liquor sector increased 0.3 per cent as the average cost of spirits and beer increased 1.4 per cent and 0.1 per cent, respectively.
*Note: Each month the Government measures the annual rate of inflation and the monthly rate of inflation. Annual changes reflect changes from the same month last year. Monthly changes reflect changes from month to month.