Reflecting the recent downward adjustments to domestic energy prices, headline inflation on a year-on-year (y-o-y) basis declined to its lowest level since November 2009 to record 1.6 per cent in October 2014, compared to 3.5 per cent in the previous month. Annual average headline inflation also declined to 3.8 per cent from 4.2 per cent. Core inflation (y-o-y) meanwhile, was at 3.6 per cent in October 2014 compared to 3.7 per cent in  the  previous  month  indicating  well  contained  demand  pressures  on  inflation.  It  is expected  that  subdued  commodity  prices  in  the  international  market,  recent  budget proposals such as reducing the Value Added Tax (VAT) to 11 per cent and stable inflation expectations would keep inflation at benign levels in the period ahead.

Read full Press Release.....