BUJUMBURA (Reuters) - Burundi's annual inflation fell to 4.6 percent in December from 5.9 percent in November mainly due to lower costs of household items, the national statistics board said on Monday.

The household items index dropped to 9.9 percent over the 12 months to December from 27.6 percent in November, the Institute of Economic Studies and Statistics (ISTEEBU) said.

The International Monetary Fund projected inflation in the landlocked country would drop to 9 percent in 2009 from 24.5 percent in 2008, and slide to 7.5 percent in 2010.

The fund forecasts economic growth in the coffee growing nation of 8 million people will reach 4 percent over the next three years, provided the country remains politically stable.

Burundi is holding presidential and parliamentary elections this year.