Rise of 5% sees some consumer prices hit harder than others

WHILE inflation increased by an average of 5% for each of the last six months, some sectors have suffered much higher increases.

While the public sector has seen considerable increases, the continuing rise in interest rates has also had a massive impact on the annual rise in mortgage interest inflation which was up a whopping 46.5% over the 12 months to the end of May 2007.

This is a reflection of the ongoing rise in mortgage rates as the ECB continues to push up the cost of borrowing in its fight against inflation.