Inflation rate lowest in five years

ANNUAL inflation has fallen to its lowest level in five years, according to official figures published yesterday, but experts warned the good news may not last long.

The Central Statistics Office (CSO) said inflation for 2004 was 2.2%, down from 3.5% the previous year and at its lowest level since the 1.6% recorded in 1999.

The drop was greater in the earlier part of the year, which was partly offset by a sharp rise between April and July triggered by surging oil prices. Petrol prices were an average of 9.8% higher during the year, while diesel was 10.4% more expensive.