The rate of inflation rose slightly in August — with an increase in food prices a major factor, statistics released this morning show.

According to the Consumer Price Index (CPI), released by the Government statistics department, the rate of inflation in August was 1.6 percent, up from 1.2 percent in July.

The CPI report said: “The 12 month increase in the Consumer Price Index was driven primarily by substantial price shifts within the food sector. The annual rate of price increase for this sector climbed 5.3 percent.

“The health and personal care and education, recreation and reading sectors also influenced strongly on the annual rate of inflation, as price shifts in both these sectors were measured at 6.5 percent.”

* Full story in tomorrow’s Royal Gazette.