Inflation continued to stay at its lowest level since at least the 1970s with the rate remaining at 1.2 percent for July 2009 - the same as the previous month - according to the latest Government statistics.

The Department of Statistics' Consumer Price Index revealed that, on a month-to-month basis, prices in the food and fuel and power sector all dropped, while the rent sector was down for the second consecutive month.

But, year-on-year, the cost of food was up 4.9 percent and rent 1.6 percent, while fuel and power plummeted by 12 percent.

Consumers were given some relief as the food sector fell 0.3 percent during July, with hamburger rolls (-3.3 percent), frozen spare ribs (-10.4 percent) and red grapes (-9.2 percent) among the biggest decliners.

Meanwhile householders enjoyed some savings on their bills as the fuel and power sector also slumped 3.6 percent for the month, with the fuel adjustment clause slipping from $12.50 in june to $11.50 in July.

The fuel and power sector has been steadily dropping over the past year, while the food sector has been down for three out of the past five months.

The rent sector dipped by 0.1 percent due to a 0.4 percent fall in the average rent for non-controlled properties, while rent prices for units subject to rent control rose 0.3 percent for July, the second straight month in a row the sector as a whole has been in negative territory for at least two years.

Elsewhere motorists felt the pinch as the transport and vehicles sector increased 4.4 percent for the month, driven by higher repair and maintenance costs for cars and cycles of 3.2 percent and 19.6 percent respectively, while the price for overseas travel advanced by 14 percent.

Rising wedding services and funeral costs of 37.9 percent and 11 percent respectively contributed to the household goods, services and communications sector, as lower prices for men's clothing (minus two percent) were offset by higher prices for women's clothing (5.9 percent) and children's clothing (0.9 percent) in the clothing and footwear sector, which climbed 0.9 percent overall.

The education, recreation and reading sector edged up 0.3 percent in July, mainly down to a 4.8 percent increase in pet care costs, while the tobacco and liquor sector rose 0.5 percent, reflecting one percent and 1.4 percent increases in the average prices of wines and spirits respectively.