Inflation hit 1.4% in 2017 after three years of marginal gains, says CBS

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The annual rate of inflation reached 1.4% in 2017, the national statistics office CBS  said on Tuesday.

Prices of goods were an average 1.5% higher than in 2016, while the cost of services rose by 1.2% the CBS said.

After three years of very small price increases, consumer prices increased more sharply in 2017.  In 2016, the 0.3% gain in the cost of goods and services was the lowest in nearly 30 years.

Fuel and electricity

The larger increase in consumer prices in 2017 was ascribed mostly to dearer petrol,  diesel and electricity. Petrol prices were 5.2% higher than a year earlier while electricity was more expensive largely due to shifts in environmental taxes.

Food prices rose 2.7%, the highest price increase since 2008. In 2016 food prices rose by 0.8%.

For the third consecutive year centrally-negotiated wage deals outpaced consumer prices. CAO wages were 1.5% higher in 2017.