TREASURY Minister Eddie Teare MHK has welcomed a continuing fall in the island’s inflation rate, which ended 2011 at its lowest level for 16 months.
The annual rate of inflation as measured by the Retail Prices Index (RPI) fell again in December, finishing the year at 4.7 per cent, down from 5 per cent in November and well below its peak of 6.8 per cent in August 2011. The latest rate is the lowest since August 2010.
Mr Teare said: ‘This is the fourth successive month in which the island’s inflation rate has fallen and I would be hopeful of the trend continuing in 2012.’
Over the course of 2011, the items that saw the biggest price increases were tobacco and cigarettes (10.5 per cent) and fuel and light (10.1 per cent).
The annual rate of inflation excluding housing costs shown by the RPI decreased from 5.3 per cent to 5.0 per cent.
The annual rate of inflation shown by the Consumer Prices Index (CPI) is also 5.0 per cent for December, down from 5.2 per cent in November.