The rate of inflation for July 2011 dropped to 3.7% compared to 4.2% in June 2011, but is higher than the rate of inflation of 2.6% recorded in July 2010.

According to figures released by the Statistical Service, the Consumer Price Index for July 2011 decreased by 1.73 units or 1.47% to 115.89 units compared to 117.62 in June 2011.

This is mainly due to decreases in the prices of clothing, footwear, furniture and furnishings due to summer sale discounts as well as to decreases in the prices of certain fresh fruit and vegetables. Increases have been recorded in the price of electricity and the salaries of housemaids.