The Harmonised Index of Consumer Prices increased to 103.96 in June 2007, mainly on account of the Transport Index, with the inflation rate standing at 1.1 per cent, according to National Statistics Office figures. In June 2007, the Harmonised Index of Consumer Prices went up by 0.2 per cent over the previous month. This primarily reflected an increase of 1.3 per cent in the Transport Index due to higher prices of fuels. The Restaurants and Hotels Index increased by 0.6 per cent, mainly as a result of higher prices in accommodation services. Higher prices of garments caused the Clothing and Footwear Index to increase by 0.3 per cent.

During the month under review, the Food and Non-Alcoholic Beverages Index decreased by 0.8 per cent due to lower prices of seasonal items. Price reductions in beer and wine caused the Alcoholic Beverages and Tobacco Index to fall by 0.1 per cent.

In June, the 12-month moving average rate of inflation stood at 1.1 per cent. In May, the inflation rate stood at 1.4 per cent.