“Householdsʼ inflation expectations have been largely unchanged in recent months and remained at moderate levels, in line with low underlying inflation developments,” it added, using similar phrasing to November.

In December 2016, changes in the prices of demand-sensitive products and more volatile items with greater sensitivity to cost changes, such as food and energy products, as well as government measures all had an upward effect on prices.

The indicator for core inflation, excluding indirect tax effects, was 1.6% in December, up from 1.4% in November. 

The indicator for demand-sensitive inflation, which excludes processed foods from core inflation, was also 1.6% in December and up from 1.4% in November.

The indicator for sticky price inflation, which includes items for which retail prices vary, on average, no more than 15% a month, was 1.8%, up from 1.7% in the previous month.

In 2016 as a whole, the consumer price index was 0.4%, core inflation was 1.4% and core inflation adjusted for the effects of indirect taxes was 1.3%.

The Central Statistical Office reported today that consumer prices rose 1.8% in December 2016 year-on-year, and were up 0.4% month-on-month, while for last year the CPI was at 0.4%.