Annual inflation rises to 3% in January
Consumer prices in January, as measured by the Consumer Prcie Index (CPI), decreased by 0.3% in the month. This compares to a decrease of 0.8% in January of last year and, as a result, the annual rate of inflation increased to 3%, up from 2.5% in December.
The EU Harmonised Index of Consumer Prices (HICP) fell by 0.5%, compared to a decrease of 1% in January 2005. The annual rate of inflation, as measured by the HICP, increased from 1.9% in December to 2.5% in January.
The most notable changes in the year were increases in housing, water, electricity, gas and other fuels (+12.1%), transport (+5.1%), education (+4.9%), health (+4.2%) and restaurants and hotels (+3.3%).
There were decreases in clothing and footwear (-1.6%), furnishings, household equipment and routine household maintenance (-1.4%) and food and non-alcoholic beverages (-0.8%).
The annual rate of inflation for goods was 1.4% in January while the corresponding rate for services was 4.4%.
The most significant monthly price changes were decreases in clothing and footwear (-14.8%), furnishings, household equipment and routine household maintenance (-3.0%) and miscellaneous goods and services (-0.7%).
These decreases were partially offset by increases in housing, water, electricity, gas and other fuels (+2.2%) and health (+1.7%).
Clothing and footwear and furnishings, household equipment and routine household maintenance decreased due to the traditional January sales.
Miscellaneous goods and services prices fell with lower motor insurance and home insurance premia.
Housing, water, electricity, gas and other fuels rose with an increase in average mortgage interest repayments, as higher interest rates were brought into effect by lending institutions. There were also increases for electricity and refuse collection.
Health costs rose due to an increase in hospital charges.
The CPI excluding tobacco index for January was 111.6, down 0.3% since December and up 3% in the year. The CPI excluding energy products index was down 0.5% since December and increased by 2.2% in the year.
