The Harmonised Index of Consumer Prices increased to 103.76 in May 2007, mainly on account of the Restaurants and Hotels Index, with the rate of inflation standing at 1.4 per cent.

In May 2007, the Harmonised Index of Consumer Prices went up by 0.7 per cent over the previous month. This primarily reflected an increase of 2.5 per cent in the Restaurants and Hotels Index. The Clothing and Footwear Index increased by 1.2 per cent due to higher prices of garments. Higher prices paid for private hospital services were the main cause of an increase of 1.0 per cent in the Health Index. The Transport Index increased by 0.7 per cent, mainly due to higher air fares.

An increase of 0.4 per cent was registered in the Recreation and Culture Index, mainly as a result of price increases in package holidays. Other marginal increases were registered in the Housing, Water, Electricity, Gas and Other Fuels Index and in the Miscellaneous Goods and Services Index. During the month under review, slight decreases in the prices of the Food and Nonalcoholic Beverages Index were registered.

In May, the twelve-month moving average rate of inflation stood at 1.4 per cent while that of April stood at 1.8 per cent.