Inflation Rate Falls to 1.4%

In December 2017, the national consumer price index rose by 0.06% compared to the previous month, whilst the rate of inflation dropped to +1.4%.

Inflation in December was reduced by oil products whose prices are falling, while those of other goods and services are rising moderately.

After four months of consecutive increases, the index of petroleum products was stopped at 0.2% in December. Although motorists pay 1.6% less for a full tank of petrol, prices increased slightly for diesel (+0.3%) and heating oil (+0.2%). Compared with December of last year, petroleum product prices are 4.2% higher.

The monthly change in prices of goods and services excluding petroleum products was +0.07% in December. In the food sector, vegetables stood out with a rise of 4.7%. In addition, price increases were notably observed for dried meat, rice and beer. This was in contrast to the supermarket prices for spirits, poultry, fresh fruits, pizzas and fruit juices, all of which declined.

As for services, the rates for nurseries and day care centres for children went up by 1.0%, restaurant and café bills rose by 0.4%), as did rents (+0.1%), all of which contributed to December's inflation.

Furthermore, at the end of 2017, seasonal movements also had an influence on the overall index. Thus, the fall in prices for package travel (-1.5%) is offset by a rise in the price of air transport (+20.8%).

The underlying inflation rate, which was on an upward trend throughout 2017 and peaked at 1.8% in October, fell sharply to 1.2% in November, whilst the general inflation rate went from 1.5% in November to 1.4% in December.