Prices of essential goods go up

Prices of essential goods rose 1.8 per cent in July compared with the same month in 2009.

The highest increase was on fish, fruit, water, electricity and gas, with the rise resulting from the increase on the IVA (VAT) rate on July 1 (by one per cent across the board).

Among the prices that rose in July are products considered essential, something which is affecting families on lower incomes.

The prices of alcoholic beverages and tobacco increased by four per cent and expenses on housing, water, electricity and fuel increased by around 5.2 per cent.

The products which registered the highest increases were electricity and gas (reflecting the increase of VAT) and fuel (driven by the VAT increase and the rising oil prices).