Log In

Reset Password

Annual inflation rate plunges to 1.9%

Inflation fell for the third consecutive month in April to an annual rate of 1.9 percent - the lowest level seen in years.

Consumers have benefited from lower energy prices as the rate of inflation has plunged from 5.2 percent in January. But as electricity costs, in particular, have declined, this year food prices have been the main driver of inflation.

Figures taken from the Department of Statistics' Consumer Price Index, released yesterday, show that consumers paid 6.5 percent more in April for food than they did a year earlier, though this was down from March's figure of 7.5 percent.

Though the overall inflation rate has fallen sharply this year, it is still higher than in the US (0.2 percent), Canada (0.4 percent) or the UK (negative 1.2 percent).

Health and personal care costs rose 2.8 percent in April, due principally to a 4.8 percent rise in the price of health insurance premiums.

Fuel and power costs came down again, dipping 0.1 percent in April, thanks to a 2.1 percent fall in the price of propane and heating fuel.

But transport and vehicle costs went up 1.6 percent for the month in response to the rising crude oil prices which led to a 2.5 percent increase in the cost of premium gasoline. Car licensing and insurance fees also went up 4.8 percent.

However transport and vehicle costs were 7.3 percent lower than in April 2008, when oil prices were surging much higher.

The clothing and footwear sector recorded its first increase in prices since last October, rising 1.7 percent, driven by a 2.8 percent rise in children's clothing.

Household goods, services and communications costs rose 0.5 percent for the month as furniture prices rose 3.1 percent, while furnishings and textiles rose 5.3 percent.

Tobacco and liquor costs rose for the ninth consecutive month and were 5.4 percent higher than in April 2008. Beer rose 0.7 percent for the month and cigarettes 0.3 percent.

The education, recreation and reading sector experienced a 0.4 percent increase for the month, as recreational services soared 4.9 percent.