December inflation rate steady at 0.5%

THIS COUNTRY’S inflation rate for December 2024 has remained relatively stable, registering at 0.5 per cent, the same as in November.

While this marks a slight decrease from the 0.7 per cent inflation recorded in December 2023, the overall trend reflects a mild inflationary environment across the economy.

The Consumer Price Index (CPI) data for December, released by the Central Statistical Office (CSO), revealed a modest 0.1 per cent increase in the all items index, which rose from 124.6 in November to 124.7 in December. The subtle uptick indicates general price pressures, particularly in the food sector.

The most significant contributor to the rise in the all-items index was the food and non-alcoholic beverages category, which saw a 0.5 per cent increase, pushing the index for this sector from 151.6 in November to 152.4 in December.

"Contributing significantly to this increase was the general upward movement in the prices of fresh whole chicken, tomatoes, parboiled rice, fresh carite, cheddar cheese, garlic, full cream powdered milk, fresh king fish, Irish potatoes and celery," the CSO reported.

"However, the full impact of these price increases were offset by the general decreases in the prices of soya bean oil, table margarine, other chilled or frozen chicken, carrots, brown sugar, ochroes, cabbage, ketchup, eddoes and dasheen."

Transportation costs also saw a modest increase, rising from 146.8 in 2023 to 149.0 in 2024, as fuel prices and vehicle-related expenses continue to be a significant cost factor for households.

Meanwhile, the housing, water, electricity, gas and other fuels sector saw a slight decline, falling from 90.2 in 2023 to 88.4 in 2024, providing some relief to consumers.

Healthcare and clothing and footwear also experienced minor increases. The health index rose by 0.2 per cent, while clothing and footwear saw a 0.1 per cent increase.

In contrast, the alcoholic beverages and tobacco sub-index fell by 0.5 per cent.

The 2024 CPI data suggests that the country's inflationary pressures remain contained despite fluctuations in specific sectors.

While food prices have been a significant concern, with some items seeing sharp increases, the offsetting price decreases in other sectors have prevented broader inflation from spiralling.

For example, the price reductions in certain vegetables, oils and sugars helped balance the higher costs in the protein and dairy categories.

Compared to 2023, the overall CPI saw a modest increase, rising from an average of 123.4 in 2023 to 124.0 in 2024.

Although food price hikes continue to challenge consumers, the relative stability of the overall inflation rate could reassure some households navigating the cost of living.