Soaring food, fuel costs push inflation to 9.6 percent

June 5, 2008

The inflation rate in May rocketed to 9.6 percent, its highest level since 1999 as a result of soaring food and fuel prices, government data released yesterday showed.

The National Statistics Office (NSO) said in a statement that the rise was “primarily triggered by the continuing higher annual price increases in the heavily weighted food, beverages and tobacco index.”

According to the NSO, the inflation rate for food, beverage and tobacco advanced to 13.7 percent in May from 11.4 percent in April; clothing grew four percent from 3.9 percent.

The annual inflation rate for food alone was up to 14.3 percent in May from 12.0 percent in April, according to NSO.

The NSO said prices in other commodity groups rose more quickly too as the overall annual inflation figure in May hit the highest level since hitting 10.5 percent in January 1999.