T&T inflation drops to 1.3 per cent

The Trinidad and Tobago central bank released the final inflation figures for 2009, showing an annualized rate of 1.3 per cent, a decrease of 13.2 per cent over the same period one year ago.

However the core inflation rate, which excludes food inflation, was at 2.2 per cent, down from 7.1 per cent a year ago.

Some food prices tumbled in December 2009, including bread and cereals (-7.7 per cent), milk, cheese and eggs (-10.2 per cent), oil and fats (-0.7 per cent) and vegetables (-1.3 per cent).

But fish was up 3.7 per cent and fruits went up a whopping 28.5 per cent. The bank said a major contributor to the deceleration in inflation over the course of the year was slower price increases for household services and a slack in domestic demand resulting from the economic downturn.

The bank also trimmed its overnight interest rate - the repo rate - by 25 basis points, taking it down to five per cent.