|Economic and Financial Review - May 2007|
By the end of the first quarter of 2007, CPI inflation declined to 10.2 per cent from 10.9 per cent as at end December 2006. The marginal slowdown in the rate of inflation was aided more by non-food prices than by food prices. Food prices rose during the first quarter by almost a percentage point (to 8.4%) while increases in non-food prices slowed down from 13.6 per cent (December 2006) to 11.6 (March 2007). The one reason for the slowdown in the non-food componenet was the fact that by the end of March 2006, petroleum prices had increased by about 10 per cent whiles a change in petroleum prices had been observed by the end of the first quarter of 2007 resulting in a base drift in the measurement of inflation over the two periods.
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