Annual rate of inflation drops to 3.1% - price index sheds 2.2%

Inflation and the Harmonised Index of Consumer Prices both dropped last month, according to figures issued this morning by the NSO.

The annual rate of inflation was shown as having dropped to 3.1 percent - the lowest in just over a year - compared to an annual rate of five percent in December.

The 12-month moving average rate of inflation was 4.6 percent from 4.7 percent in December.

The NSO said the index of consumer prices declined by 2.2 percent in January over the previous month, primarily reflecting a 19.5 percent decrease in the clothing and footwear index as a result of seasonal price reductions.

Lower fuel prices caused the transport index to go down four percent.

There was also a 2.3 percent drop in the restaurants and hotels index and a 0.7 percent decrease in the recreation and culture index.

The health index rose by 0.6 percent on account of higher prices medical and paramedical services.