Low Inflation levels locally

ANNUAL inflation for January was down to 2,4 per cent from 12,8 per cent at the same time last year, according to the first Interim Consumer Price Index (ICPI) for 2004, released by the National Planning Commission (NPC) this week.

Annualised Inflation on food was below the zero level for the first time since before 1999. The graphical representation of the annual inflation rate shows that the drop in annual inflation which started at the end of 2003 is now reaching new lows.However, the monthly inflation rate was up from 0,5 per cent in December last year to 0,7 per cent in January 2004.The NPC attributes the monthly growth in inflation to rising medical (9,1 per cent), recreation, education(8 per cent), miscellaneous goods and services(2,1 per cent), household goods and services(0,5 per cent) as well as food (0,4 per cent).Still, the growth in the rate of price increases since last year is much less than what was experienced starting 2003.Annual inflation rate for food dropped to 1,4 per cent for January 2004 and all items together were down to 2,4 per cent from 12,8 per cent at the same time last year.The ICPI shows that inflation on domestic goods increased from December last year to January this year but was still 1,6 per cent for January 2004 compared to 25 per cent at the start of 2003.Inflation on imported goods likewise stood at 0,9 per cent from 11,7 per cent in January 2003.The graphical representation of the annual inflation rate shows that the drop in annual inflation which started at the end of 2003 is now reaching new lows.However, the monthly inflation rate was up from 0,5 per cent in December last year to 0,7 per cent in January 2004.The NPC attributes the monthly growth in inflation to rising medical (9,1 per cent), recreation, education(8 per cent), miscellaneous goods and services(2,1 per cent), household goods and services(0,5 per cent) as well as food (0,4 per cent).Still, the growth in the rate of price increases since last year is much less than what was experienced starting 2003.Annual inflation rate for food dropped to 1,4 per cent for January 2004 and all items together were down to 2,4 per cent from 12,8 per cent at the same time last year.The ICPI shows that inflation on domestic goods increased from December last year to January this year but was still 1,6 per cent for January 2004 compared to 25 per cent at the start of 2003.Inflation on imported goods likewise stood at 0,9 per cent from 11,7 per cent in January 2003.