The annual rate of inflation fell to 2.3 percent during July as a spike in health and personal care costs drove the increase in the cost of living.

The Department of Statistics' Consumer Price Index report revealed that the inflation rate was 0.3 percent lower than the level of 2.6 percent for the previous month. But between June and July the average cost of goods and services climbed 0.2 percent.

Leading the way was the health and personal care sector which increased 8.7 percent in cost year-over-year, while the rent and food sectors were also up 1.4 percent and 2.8 percent respectively.

Clothing and footwear (3.2 percent), education, recreation and reading (2.3 percent) and tobacco and liquor (1.8 percent) were other contributors.

On a monthly basis, motorists paid more as the transport and vehicles sector advanced 1.1 percent in the month of July due to higher repair and maintenance costs for cars and cycles of 9.1 percent and 1.2 percent respectively.

Prices for overseas hotel accommodation also rose substantially by 14 percent for the month.

The rent sector climbed 0.1 percent, mainly down to a 0.2 percent rise in the average rent for controlled properties. Rent prices for units not subject to rent control recorded no change in July.

The clothing and footwear sector meanwhile advanced 0.3 percent, with the average cost of women's clothing up 2.1 percent, 1.9 percent and 0.5 percent respectively.

The health and personal care sector crept up 0.1 percent for the month as a result of a 1.9 percent and 1.5 percent rise in the cost of facials, manicures and massages, and women's hair styling respectively.

Consumers were also hit in the pocket, as the food prices climbed by 0.1 percent - most notably pasta (5.7 percent), beef tenderloin (5.6 percent) and cheddar cheese (3.1 percent).

Drinkers and smokers saw no relief either, with the tobacco and liquor sector up 0.2 percent, reflecting increases in the average price of wines (0.3 percent) and spirits (0.5 percent).

The fuel and power; education, recreation and reading; and household goods, services and communications sectors all remained unchanged for the month.