Consumer prices went up by 0.53 percent this December, bringing the 2010 annual inflation to 7.96 percent, announced this Wednesday the National Statistics Institute (INS). The level is almost double the one registered in 2009 when the annual inflation reached 4.74 percent.
The increase was mainly triggered by the 5 percent hike of the VAT last July as well as by price increases for tobacco products (+26 percent in 2010) and fuels (+15 percent). Compared with 2009 food prices increased by 6.5 percent in 2010, non-food product prices by 9.8 percent and services were with 6.4 percent more expensive.
The 2010 inflation surpassed the central bank’s target range of 2.5 percent – 4.5 percent, making it the fourth consecutive year when BNR misses the target. For 2011, the central bank targets an inflation of 3 percent plus/minus one percentage point.