Turning to the outlook for next month, NS said that seasonal-food prices have recently shown a different pattern betwen the month of December and January.
Last year prices remained stable between the two months, while in 1998 and 1999 there were month-on-month decreases which had not been since 1972. Hence, there could be an upward effect on the annual rate if price changes revert to historic patterns and rise in January, NS suggested.
NS also said prices for household goods tend to fall in January because of sales. Recently, successive January discounting has been larger than in previous Januaries, it observed.
January 2000 saw the largest month-on-month decline since comparable records began in 1957, it added.