Inflation at lowest rate in 16 months

Treasury Minister Eddie Teare has welcomed news that our current rate of inflation is at its lowest rate for 16 months.

The decline continued throughout last year and the year ended with its most promising rate since summer 2010.

The annual rate of inflation was measured by the Retail Prices Index and fell again in December, finishing the year at 4.7%, down from 5.0% in November and well below its peak of 6.8% in August 2011.

Minister Teare said he was hopeful this trend would continue throughout the next 12 months.