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Inflation rises - but still under 1%

Inflation rose slightly to 0.7 percent but was still at its second lowest level for the year during October 2009, according to the latest figures released by Government.

The Department of Statistics' Consumer Price Index revealed that the rate of inflation was up 0.5 percent in October on its annual low of 0.2 percent in September.

The inflation rate was impacted by a 22.8 percent drop in the fuel and power sector in October 2009 compared to the same period last year.

But health and personal care was the largest contributor to the 12-month increase, with the cost of items up 7.3 percent year-over-year, overtaking the food sector, which had been the driving force for inflation over the past 10 months.

The sector, as a whole, climbed 1.5 percent month-on-month, mainly due to higher health care costs for doctors' and dentists' visits and eye care services, as consumers paid 15.5 percent more for doctors' visits and dental service costs advanced 8.5 percent.

The rent and food sectors also significantly effected the annual rate of inflation, as price shifts in these areas were 1.3 percent and 2.8 percent respectively.

The transport and vehicle sector rose by 3.1 percent on a monthly basis, with foreign travel costs, including airfare and hotel rates, increasing 8.7 percent for the month and consumers paying more for motor vehicles and motorcycles of 0.2 percent and 0.9 percent respectively. However, fuel prices remained unchanged over this period.

The household goods, services and communications sector also edged up 0.1 percent for the month, primarily as a result of a rise in the price of household furniture.

Clothing and footwear, meanwhile, fell 0.4 percent, with the average price of women's and children's clothing declining by 1.2 percent and 0.3 percent respectively.

There was also good news for smokers and drinkers as tobacco and liquor prices retracted 0.3 percent, with the price of wines dropping 0.1 percent, while the price of beer and spirits was down 0.7 percent and 0.3 percent respectively.

Elsewhere, the fuel and power, food and education, recreation and reading sectors stayed the same, with the rent sector experiencing little change for the month.