The CPI inflation rate fell for the second consecutive month in October to 5,5% from 6% in September. The drop is mainly because of lower monthly price increases, especially when compared to the same period in 2012. The monthly increase was 0,2% compared to 0,6% in October last year. The drop in the petrol price of 19c/l translated in to a drop of 1,4% in the petrol index.
The single driver of the monthly increase was food and non alcoholic beverages. The 0,9% increase in this category was the highest since January this year when it was also 0,9%. However, it is significantly lower than the 2,5% monthly increase registered in October 2012. Among the products driving food inflation this month are tomatoes (19,6%), soup powder (5,7%) and baby food (3,7%). Beer registered a 1,5% monthly increase, pushing the annual rate to 9%.
The past few months have seen strong price increases in hotels (3,4% over past three months) and packages holidays (6,5% over three months), possibly as people start to book their Christmas holidays.
Large monthly increases were observed in personal care products such as sanitary pads (3,6%), disposable nappies (2,7%) and skin lotion (3,4%).
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