THE August Honiara Consumer Price Index (CPI) has fallen by 0.7 percent from the previous month to 184.3.

This was largely driven by price declines in food and, transport and communication.

The CPI is a monthly indicator of the variation in prices of a selected basket of goods and services reflective of the spending behaviour of Honiara residents.

It is released monthly by the National Statistics Office.

“The good news for residents of Honiara is that price decreases in food were seen mainly in powdered milk, fruits and fresh vegetables, and sugar and confectionary,” said Government Statistician Douglas Kimi.

“However, there were some price increases in other food items such as kumara, cassava, dried coconut, coral fish and canned tuna.

“The annual headline inflation rate, which indicates the change in price levels from previous periods, is calculated on a 3 month average and was observed at -0.7 percent.

“The corresponding inflation rates for imported and domestic items were -1.6 percent and -0.2 percent respectively.

“This is the first time headline inflation has turned negative since August, 2015.”

Other major changes include declines in the Clothing and Footwear, Household and Utilities, Transport and Communications and Miscellaneous Items sub-indices, offsetting an increase in the Drinks and Tobacco sub-index.

These changes were driven by price decreases for a range of items such as tobacco, bedspreads, kerosene, petrol, domestic airfares and toiletries, while noting price increases betel-nut and diesel.

Underlying inflation rate, which is the headline inflation rate isolating mainly seasonal and volatile items, was observed between 0.1 percent and 1.1 percent.