The annual inflation rate dropped to 4.96 percent in October against 5.33 percent in the previous month, below the central bank’s revised estimate of 5.1 percent for 2012, according to the National Statistics Institute (INS).
Prices moved up by 0.29 percent last month, due to gains services and non-food products that added 0.87 percent and 0.21 percent. Food prices increased by 0.09 percent.
The average price increase on 12 months (October 2011 – September 2012) was 3.1 percent, based on the consumer price index. Food prices rose by 6.14 percent, while services and non-food products added 4.89 percent and 4.04 percent respectively.
The central bank recently revised upwards the inflation target to 5.1 percent this year. It should fall to 3.5 percent by end-2013.