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Inflation rate creeps up to 1.2%

Inflation crept up to 1.2 percent for January as food prices rose 2.1 percent for the month, according to Government's latest figures.

The Department of Statistics' Consumer Price Index (CPI) report revealed that inflation was up on the previous four months - its highest level since August 2009.

The average cost of goods and services in the CPI edged up 0.5 percent between December 2009 and January 2010.

Health and personal care was the biggest driver for the 12-month climb, as it was for the whole of the fourth quarter 2009, with the annual increase of 7.2 percent in January equaling that of December 2009.

The food and household goods, services and communications sectors also impacted strongly on the annual rate of inflation through price shifts of three percent.

On average, consumers paid 2.1 percent more for food, with bread up 2.8 percent, whole chicken by 4.2 percent and canned vegetables 3.9 percent.

Motorists also saw a 1.9 percent rise in the transport and vehicles sector last month, accounted for by a 4.6 percent increase in the price of fuel and a 5.6 percent advance in airfare.

The rent sector inched up 0.1 percent, attributed to a 0.2 percent rise in rent-controlled properties, while rental units not subject to rent control showed no change for the month.

Meanwhile, the household goods, services and communications sector was up 0.1 percent, pushed higher by a 0.8 percent rise in the cost of child care services and a 0.6 percent increase in household supplies such as cleaning materials, detergents and bleaches, and paper supplies.

The education, recreation and reading sector also advanced 0.1 percent for the month, as teh average cost of pet care increased 1.2 percent and the cost of boat fuel rose 4.6 percent.

The fuel and power sector edged up 0.2 percent during January, reflecting a 3.3 percent increase in the price of a cylinder of propane gas.

The health and personal care sector remained unchanged for the month, but there was some reprieve for smokers and drinkers as the tobacco and liquor sector slipped 0.1 percent due to a 0.7 percent drop in the price of beer.

The clothing and footwear sector also contracted 2.6 percent, with the average price of men's and women's clothing down 13 percent and 10.8 percent respectively. In contrast, jewellery prices increased by 28.8 percent.