Consumer prices fall by 0.3% in May, slightly more than expected

Consumer prices retreated slightly more than expected in May, led by declines in the costs of foreign travel and fresh vegetables, data released by the Central Bureau of Statistics show.

On a monthly basis, the consumer price index (CPI), a measure of inflation that tracks the average cost of household goods, fell in May by 0.3%, compared to analysts’ expectations for a decline of between 0.1% to 0.2%.

The monthly reading takes annual inflation over the past 12 months to 1.9%. The inflation rate is well within the government’s annual target range of between 1% to 3%.

In May, reductions were seen in the prices of fresh vegetables, which fell 4.9 %, transportation costs retreated 2.7%, and furniture and equipment slipped 0.4.%. Expenses for travel abroad dropped 16.9%.

These were offset by increases in the cost of fresh fruit, which rose by 6.7%, clothing and footwear increased by 1.9%, and culture and entertainment added 1.1%.

Rents on renewal of real estate contracts jumped 2.5% in May, and rents on contracts for new tenants surged 6.8%.