Consumers are paying four percent more than they did last year according to the latest figures released by the Department of Statistics.

Despite easing back from a 16-year high of 4.5 percent in May 2007, the inflation rate in June was still hitting shoppers pockets hard compared to the same time last year.

Between May and June this year the average cost of goods and services in the Consumer Price Index rose by 0.6 percent from 104 index points to 104.6, meaning that the products that cost $100 in April 2006 now cost $104.60. The rent sector was the strongest contributor to the 12-month increase in the Index, while the health and personal care sectors also impacted strongly on the annual rate of inflation.

Prices for controlled properties increased four percent year-on-year, with those properties not subject to rent control advancing 2.2 percent.

Meanwhile the rate of price increase for the health and personal care and transport and vehicle sectors was 6.8 percent and 5.8 percent respectively.

Health and personal care prices advanced 0.2 percent in response to higher average prescribed medicine costs.

Elsewhere food prices rose on average by 1.1 percent in June, with bacon (2.9 percent), bananas (2.6 percent) and breakfast cereal (1.4 percent) the main contributors.

The education, recreation and reading sector increased 0.3 percent for the month due to higher pet care (1.6 percent) and magazine (0.5 percent) costs, while the fuel and power sector moved ahead 4.5 percent as a result of higher electricity costs as the fuel adjustment clause rose by 9.4 percent and the cost of a cylinder of propane gas advanced by 2.2 per cent.