Inflation down to 0.3% in May

The rate of inflation fell to 0.3% in May from a level of 1.8% in April, however it maintained an annualised rate of 10%, according to the data from the National Statistics Institute. The peak in the consumer price index in April was caused by the increase in natural gas prices and excise duties. This meant that annualised inflation reverted to two digits for the first time since November 2004, a level it maintained in May. Compared with the end of last year, the average increase in prices in May was 3.8% – more than half the level estimated by the authorities for the entire year of 7%. The average monthly rate fell from 0.9% to 0.8%. The most significant rise in prices occurred in the service sector, as was the case in April. Prices across the sector rose 1% on average. Water and sewer tariffs rose by 1.9%, urban transport prices increased 3.7%, while postal fees increased 6.1%. Food prices remained at almost the same level, rising only 0.1%, while non-food product prices rose only 0.2%. ZF