Inflation fell to a 35-year low in September with prices rising by just 0.2 percent, according to the latest consumer price index report released this morning.

And the biggest factor behind the drop was a massive fall of more than 20 percent in electricity costs.

The report said: “Consumers paid 0.2 percent more in September than they did a year ago for the basket of goods and services included in the consumer price index (CPI).

“This marked the lowest rate of inflation recorded since December 1974, when no change was recorded.”

It added: “The fuel and power sector was the driving force behind the sharp reduction in the rate of inflation. The average cost of electricity fell. This was largely influenced by a large drop in the fuel adjustment clause. As a result, prices within the sector fell 22.7 percent annually.

“In contrast, the food, health and personal care sectors were the largest contributors to the 12-month increase as price shifts in these sectors were 4.9 percent and 6.4 percent, respectively.”

* See tomorrow’s Business section for the full report.