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Island inflation falls to 4.1% in August

CPI down on July but high year-on-year

The annual rate of inflation in the Island fell by 0.5% last month, to 4.1%.

The August figure reverses a rising trend over the past three months, but is substantially higher than a year ago, when the Island was in a deflationary zone.

In August 2016, the Consumer Prices Index had fallen to 0.5%.

Last month's decline compared to July is largely due to transport costs falling, after the peak summer period.

However, almost all categories measured in the CPI's 'basket' of goods saw price rises, with communications, restaurants and hotels, and clothing and footwear showing the steepest increases.

In its commentary on the latest figures, the Economic Affairs unit of the Cabinet Office says the impact of recent hurricanes on US oil production are likely to push up petrol prices in the UK, and thus nudge inflation upwards in future months.

The Retail Prices Index (RPI) remained steady in August at 7%.

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