Inflation slows to 0.6% in August; Central Bank leaves Repo Rate at 3%

The Trinidad & Tobago Central Bank announced on Friday that headline inflation slowed to 0.6 per cent in August 2011 from 1.4 per cent in the previous month.

However it said while inflation remained subdued, there was an overall increased on the monthly rate from 1.1% in July to 1.3% in August.

The bank credited the low inflation to a decline in food prices, which brought the headline rate to below one per cent. The decrease in the cost of food was by 0.3% year on year in August, down from 1.6% in July.

It said the leading cause of the decline was the drop in the cost of vegetables, meat and fish. The cost of bread and cereals, oils and fats, fruits and sugar and confectionery products increased, offsetting some of the gains made through the low cost of vegetables.

The bank also decided to leave the Repo Rate at three per cent. That's the rate banks charge for overnight bank-to-bank transactions and is a benchmark for setting lending rates.

Read the full report from the CENTRAL BANK