WEDNESDAY, 2.00PM
The annualised inflation rate in May fell to 9,5% from April’s 9,9%, according to latest figures from the Central Statistical Service.
Reserve Bank governor Dr Chris Stals said he was “very encouraged” by the inflation figure.
The drop in inflation over the month came despite a relatively large increase in food inflation. From April to May the Consumer Price Index increased by 0,3%, which annualised to 0,4%.
The food index showed an annual increase of 11,7% in May, 1,2 percentage points above the April figure of 10,5%. Biggest contributors to the highg rate of food inflation were dairy products and eggs, sugar, and fresh vegetables. The overall food inflation figure was somewhat ameliorated by a sharp decrease in the index for fruit and nuts.