After two consecutive months of decline, annual consumer inflation crept up in January, rising to 5.3% from 5.1% in December.
The categories in the CPI basket with the largest annual price increases were restaurants & hotels at 8%, food & non-alcoholic beverages (NAB) at 7.2%, and health at 6.5%.
A monthly decline of 5.2% in fuel prices between December and January was not enough to subdue the annual rate for fuel, which jumped from -2.5% in December to 3.3% in January.
This contributed to a sharp rise in annual transport inflation to 4.6% from 2.6% in December.
Inflation for several transport categories cooled in January. With the festive season over, public transport tariffs decreased by 2% in January compared with December, dragged lower by monthly price decreases for long-distance busses (down 21,2%), car rental (down 12.1%) and air fares (down 4.1%).
Wining and dining more expensive
Prices for the restaurants and hotels group increased by 8% in the 12 months to January, up from December’s print of 7%.
After rising during the festive season, hotel room rates decreased by 2.1% between December and January.
Despite this decline, hotel rooms remain more expensive than a year ago, with prices increasing by 10.7% in the last 12 months.
Food inflation cools for a second consecutive month
Annual inflation for food and NAB slowed to 7.2% in January from 8.5% in December and 9% in November.
All sub-categories recorded lower annual rates, apart from sugar, sweets & desserts, oils & fats, and cold beverages.
The annual rate for sugar, sweets & desserts increased from 17.9% in December to 18.5% in January. Sugar prices drove much of the upward momentum, with the annual rate for white sugar accelerating from 20.1% in December to 21.2% in January.
Annual inflation for bread & cereal products declined from 7.5% in December to 6.5% in January. Meat inflation was also softer, cooling from 3.9% to 2.2%.
The graphs below show the products that recorded the most significant annual and monthly price increases in January.
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