After a promising four-month decline, headline inflation has now gone up.

In a news release yesterday, the Central Bank of Trinidad and Tobago (CBTT) disclosed that while inflation remains under five per cent, the figures have risen by five points.

The data is the latest released by the Central Statistical Office (CSO) and is based on figures for the month of September 2009.

Food prices have again taken most of the blame.

’Headline inflation, measured by the twelve-month increase in the Index of Retail Prices, rose to 4.9 per cent in September from 4.3 per cent in the previous month, reflecting higher food prices,’ the CBTT said yesterday.

’Food price inflation, the main contributor to headline inflation, measured 6.8 per cent in the twelve months to September, compared with 5.2 per cent in August. Increases in the food sub-index came mainly from fruits and sugar and confectionery products.’

Core inflation, which excludes food prices, also inched up to 3.9 per cent in the twelve months to September, from 3.8 per cent in August.

The rise reflected increases in the prices of alcohol and tobacco, following the imposition of higher taxes announced in the 2009/2010 Budget.

The CBTT also said the main factor behind the subdued inflation performance continues to be a decline in economic activity and domestic demand.

Available indicators suggest while the economic downturn may be levelling off, consumer confidence and private spending remain depressed, the bank said.