Inflation increased to 1.6 percent in August driven by rising food prices — the first time it has gone up from the previous month this year, according to the latest Government statistics.

The Department of Statistics' Consumer Price Index revealed that the inflation rate started to climb again after hitting its lowest point of 1.2 percent during June and July 2009.

The overall figure was contributed to by an annual rate of price increase of 5.3 percent in the food sector and a 6.5 percent year on year rise in both the health and personal care and education, recreation and reading sectors.

Shoppers felt the pinch with the food sector climbing 1.4 percent in the month of August, including most notably sodas (7.1 percent), juices (4.1 percent) and ice cream (3.7 percent), on a month-to-month basis.

Motorists also paid higher prices at the pump as the cost of premium and mixed gasoline rose 5.4 percent and 5.8 percent respectively, while foreign travel costs also increased month-over-month with airfares climbing 12.8 percent.

Overall, the transport and vehicle sector moved ahead 2.6 percent for the month.

Tenants similarly paid out more with rent prices for units not subject to rent control up 0.1 percent, with rent-controlled properties rising 0.2 percent, repair and maintenance costs advancing 0.1 percent and the rent sector as a whole increasing 0.1 percent during August.

Smokers and drinkers meanwhile saw the cost of their favourite brands go up as the tobacco and liquor sector rose 0.9 percent, most notably with wine increasing 2.9 percent for the month.

Cinema and theatre goers also experienced a rise in the cost of admission prices, up 2.1 percent, as the education, recreation and reading sector grew 0.1 percent in August.

Household medical supplies increased 0.8 percent for the month, with the health and personal care sector rising 0.1 percent during the month.

However, there was some respite for consumers, with the household goods, services and communications, fuel and power and clothing and footwear sectors all remaining unchanged over August.