In January 2007, the Retail Price Index declined by 1.18 per cent, mainly due to a decrease of 18.45 per cent in the Clothing and Footwear Index, the National Statistics Office reported yesterday.

The Water and Electricity Index went down by 2.98 per cent due to decreases in the water and electricity surcharge and the Transport and Communication index decreased by 0.30 per cent mainly on account of lower prices for air transport services. A 0.28 per cent decrease was registered in the Household Equipment and House Maintenance Index.

The Personal Care and Health Index registered a 0.13 per cent decrease, reflecting price decreases for hygienic articles and toilet preparations. In contrast an increase of 0.89 per cent was registered in the Food index. Higher prices of fresh fish, fresh vegetables and served meals were the main causes of the increase.

A 0.58 per cent increase was registered in the Other Goods and Services Index mainly due to higher prices paid for insurances. The Housing Index increased by 0.46 per cent, mirroring an increase in prices for dwelling maintenance and parts for household appliances. A marginal increase of 0.17 per cent was also registered in the Recreation and Culture Index.

The 12-month moving average rate of inflation stood at 2.70 per cent in January 2007, compared to 2.77 in December.