Driven by higher rentals and rising charges for eating out, inflation increased 4.23 per cent year-on-year during September, according to information released on Friday by the Statistics and Census Service (DSEC). Nevertheless, inflation was down 0.41 percentage points from 4.64 per cent in August.
The largest increase in the prices index was recorded for Alcoholic Beverages and Tobacco, up 38.42 per cent year-on-year. According to DSEC, this increase was caused by the new tobacco tax, which came into effect in July. Month-on-month there was a decline of 0.29 per cent.
Education also became more expensive, as its price index increased 8.93 per cent due to higher tuition fees for the new academic year, which started in September. During the same period, prices for health increased 6.12 per cent, primarily related to outpatient services.
In comparison with September of last year, prices for housing and fuel increased 6.05 per cent. Month-on-month prices increased 0.05 per cent, due to higher rental prices.
Year-on-year, prices of Clothing and Footwear declined 0.65 per cent, while prices for Communication went down 0.98 per cent. However, month-on-month, these prices decreased 1.66 per cent and 0.13 per cent, respectively. The decline in the cost of clothes was explained by ‘seasonal sales’.
Regarding transportation, while year-on-year recorded an increase of 1.46 per cent, from August to September there was a decline in prices of 0.45 per cent because of lower airfares and gasoline costs.
Recreation and Culture also became cheaper during September by 1.54 per cent, driven by cheaper charges for package tours. Comparing prices with September 2014, however, an increase of 0.41 per cent was recorded.
Since 2011, annual inflation in the territory has always exceeded five per cent, ranging from 5.50 per cent to 6.11 per cent. Last year, it achieved 6.05 per cent.


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