The National Statistical Institute registered a 1.6 per cent deflation in June 2006.

Compared to the inflation levels in June 2005, inflation was 8.2 per cent and the accumulated inflation reached 2.9 per cent, Dnevnik newspaper wrote.

According to the statistics, food prices fell by 4.4 per cent since May. The cost of services increased by 0.2 per cent and the price of other goods remained the same.

Food and soft drink prices registered the highest deflation of 4.6 per cent. Household equipment and furniture cost 0.1 per cent less than during the previous month.

Transportation, clothes and shoes cost 0.1 per cent more. Alcohol and tobacco product prices increased by 0.2 per cent.

The cost of healthcare and education services was 0.2 per cent higher. Rents, water, electricity and gas expenses registered 0.1 per cent increase, Dnevnik reported.