1.6% the Increase in the Consumer Prices Average during September 2007

The data issued by the Department of Statistics indicate an increase in the Consumer Price Average during September 2007 by 1.57% compared with the previous month (August 2007) following the relative stability of prices witnessed since the end of 2006.

The Consumer Price Index (which represents the weighted average for all commodities and services in the consumer basket) reached 122.47 during September 2007 (as compared to 120.58 during August 2007). Therefore, the accumulative increase in the Price Index since the beginning of 2007 reached 2.28% (by comparing the Consumer Price Index in September 2007 with December 2006). The report shows that part of the increase which took place in September is due to the seasonal impact. September (Ramadan) has witnessed an increase in some commodities (vegetables, meats & poultry, diary and its products and eggs), meanwhile some commodities has witnessed a decrease in their prices in September (beverages and communications).

Meanwhile, it is noticed that the Annual Inflation Average, which measures the percentage of price increase between 2007 and 2006, has taken a declining trend.  The increase of prices has fallen to 5.47% during the first nine months of this year as compared with the same period of 2006, while the increase in the first eight months of this year was 5.62 % as compared with the same period of 2006. The report attributes the retreat in the average price index ( accumulative) (expected to persist over the next months if the same conditions prevail) to the fact that the impact of the fuel price hike that took place during the second quarter of 2006 has been reflected in the comparison years 2006 and 2007 as of the second quarter of 2007.

The following figure shows the trend of the Consumer Price Index during 2005 and 2006 and the first nine months of 2007.