The inflation rate fell to 0.3 per cent in May, according to Bermuda Government figures.

A 3.6 per cent drop in average property rental prices, for properties not subject to rental control, was a contributing factor. Inflation had been 1 per cent in April.

Month-on-month analysis in the Consumer Price Index bulletin showed price increases in the fuel and power, food, tobacco and liquor, and the education, recreation entertainment and reading sectors, while the health and personal care, and clothing and footwear sectors were unchanged.

There was a 2 per cent decrease in the rent sector overall, attributed to the aforementioned fall in the cost of rental properties outside rental control.

The transport and foreign travel sector was down 1.6 per cent as the average cost of airfares and premium fuels dropped 2.3 per cent and 2.2 per cent, respectively.

The household goods, services and supplies sector fell 0.2 per cent, with the average cost of household appliances such as microwaves, dishwashers and air conditioners down 10.6 per cent.

In the fuel and power sector, prices rose 1 per cent due to a 3.1 per cent increase in the fuel adjustment clause.

Food prices were up 0.3 per cent on average, with salad dressing up 4.1 per cent, and the price of potatoes up 3.3 per cent.

In the tobacco and liquor sector prices were up 0.8 per cent, with the average cost of wine rising by 2.6 per cent.

In year-on-year analysis, the health and personal care sector was the largest contributor to inflation, increasing 2.3 per cent. The major contributing factor was the average cost of health insurance premiums.

The Consumer Price Index was released by the Department of Statistics.

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