The Central Bank reports that inflation increased by 1.55% in January. The report on the behavior of the Consumer Price Index shows that annualized inflation from January 2005 to January 2006 was 8.25%. This is significantly lower than the 18.79% inflation reported for the similar period a year ago. The 12-month inflation rate has continued its declining trend and is now at 3.5%. The Central Bank explains that the increase in inflation is due to increases in the cost of fuel, electricity and transport services, and the ITBIS tax, as a result of the January Law 55-705 on fiscal reform.