Inflation rate is 2.6 per cent, Gov't figures reveal

The rate of inflation was 2.6 per cent in June — down 0.2 per cent from the previous month, it was revealed this week.

The inflation rate means ­consumers paid 2.6 per cent more for goods and services than they did in June 2009.

Government figures show the 12-month increase is largely ­attributed to rising costs of health and personal care items, which soared by 8.6 per cent.

Analysis

The transport and vehicles and rent sectors also had a major ­impact on inflation, with prices soaring by 4.2 per cent and 1.2 per cent respectively.

Month-to-month analysis shows that the health and personal care sector rose by 0.6 per cent in June due to a 7.6 per cent increase in costs for lady’s hairstyling and a 3.4 per cent hike in prescribed medicines.

The rent sector went up 0.2 per cent, reflecting a 0.4 per cent rise in average rents for controlled properties, while food prices rose by 0.1 per cent.

Tobacco and liquor rose by 0.1 per cent with a 0.4 per cent ­increase in the average cost of beer and a 0.3 per cent drop in the average cost of spirits.

Costs

The clothing and footwear and fuel and power sectors did not change, nor did education, recreation and reading due to a 6.1 per cent rise in recreational equipment costs being offset by a 3.1 per cent fall in boating fuel prices.

The household goods, services and communications sector dropped 0.5 per cent in June thanks to an 8.4 per cent decline in the price of elder care.

Finally, the transport and ­vehicles sector fell 1.2 per cent in June as a result of lower airfares and fuel prices contracting by 4.4 per cent and 3.3 per cent respectively.