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Inflation rate falls to 2.6%

Price rise: Food prices edged up slightly in June.

The rate of inflation fell slightly to 2.6 percent during June even though the rising cost of health and personal care impacted the cost of living, according to the latest Government figures.

The Department of Statistics' Consumer Price Index (CPI) report revealed that June had the third highest inflation rate so far this year, down slightly from its peak of 2.9 percent in April and 2.8 percent in May.

But between May and June the average cost of goods and services in the CPI fell 0.1 percent.

Health and personal care items were the biggest contributors to the 12-month increase, rising 8.6 percent, while the transport and vehicle, and rent sectors also advanced 4.2 percent and 1.2 percent respectively.

However the fuel and power sector dropped 3.3 percent - the only decline in the nine categories.

On a month-to-month basis, the health and personal care sector edged up 0.6 percent in June in response to higher prices for lady's hairstyling (7.6 percent) and prescribed medicines (3.4 percent).

The rent sector also increased 0.2 percent, reflecting a 0.4 percent rise in average rents for controlled properties.

Food prices meanwhile upped 0.1 percent for the month, with pork loins (7.4 percent), red grapes (6.7 percent) and onions (5.9 percent) accounting for the increase.

The tobacco and liquor sector advanced 0.1 percent due to a 0.4 percent rise in the average cost of beer, but the cost of spirits decreased by 0.3 percent.

On the flipside, the household goods, services and communications sector fell 0.5 percent in June as a result of an 8.4 percent drop in the price of elder care, while the transport and vehicles sector also declined 1.2 percent driven by lower airfares and fuel prices, as average prices contracted by 4.4 percent and 3.3 percent respectively.

The education, recreation and reading sector remained unchanged for the month, down to a 6.1 percent rise in the cost of recreational equipment being offset by a 3.1 percent decrease in boating fuel prices.

The clothing and footwear and fuel and power sectors also saw no change, with the fuel adjustment clause staying the same for the 12th straight month.