By Devan Daniel

Inflation for December increased to 4.8 percent from 2.8 in November while the annual average rate of inflation settled at 3.4 percent, the lowest on record, according to available data since 2007 released by the Central Bank.

The point-to-point change in Inflation peaked at 28.2 percent in June 2008, but gradually declined before reaching 0.7 percent in September 2009, before picking up again, ending the year at 4.8 percent.

The annual average rate of inflation was 10.6 percent in January 2007 and was increasing each month until it leaked at 23.4 percent in October 2008. Since then it has declined gradually reaching its lowest level, 3.4 percent in December 2009.

The Central Bank expects inflation to increase in 2010, but still remain within single digit figures.