The year-on-year inflation rate as measured by the Consumer Price Index (CPI) has declined for the 3rd consecutive month from 4.1% in July to 3.6% in August, shedding 0.6 percentage points.
The latest figures from the Central Statistical Office mean that prices as measured by the all items CPI increased by an average of 3.6 percentage points between August 2009 and August 2010.
The recent decline in inflation rate, which is attributable to stability in prices as well as implementation of macro economic stabilisation policies has raised optimism that the country is on course to attain a target of 4.5% inflation rate by year end.
Meanwhile, the month-on-month inflation rate in August 2010 was -0.1%, a figure which was unchanged from the previous month.
The country, which is using multi-currency and cash budgeting, last month recorded the lowest inflation rate in the region.