the goods and services included in the Consumer Price Index (CPI).

This rate of inflation was above the 2.3 percent and 2.6 percent levels reached in July and June of this year respectively.

The news came yesterday from Government's Statistics Department in its report on Bermuda's CPI for the month.

During the month, consumer prices, on average, advanced 0.5 percent. The all-items index rose from 113.5 index points in July to 114.1 in August.

Among the main sectors that comprise the index, Transport and Vehicles posted the strongest price movement with an increase of 2.1 percent.

The Statistics Department reported: "This rise was primarily in response to seasonal increases in the cost of airline tickets (two percent) and overseas hotel accommodations (4.4 percent).

"The combined increase, however, was offset by a decline in both car and cycle fuel by 1.6 percent and 1.5 percent, respectively.'' Among the other eight sectors comprising the index, Food, Clothing and Footwear and Tobacco and Liquor showed no change in average prices between July and August.

Rent prices rose with average rents for both controlled and decontrolled properties climbing 0.2 percent while the cost of building home materials for repairs and maintenance rose 0.7 percent.

Prices in the Fuel and Power sector rose 1.4 percent, primarily in response to an increase in the fuel adjustment clause (FAC).

The varying FAC rose 11 percent during August and pushed the cost of electricity up by 1.5 percent.

Meanwhile, the average cost of a cylinder of propane gas rose 0.3 percent.

Household Goods, Services and Supplies' prices increased by 1.1 percent with the Household Services sub-component registering "notable increases'', the Department reported.

"The cost of postage stamps edged up with local mailing rising to 35 cents and overseas ten gram letters reaching 70 cents.

"Consumers also paid more for a truck load of water (9.5 percent) and legal fees (10.7 percent).'' Elsewhere, consumers spent 2.6 percent less on electronic equipment such as video cassette recorders and computers and 0.1 percent less on household supplies.

Prices for the Education, Recreation and Reading sector also fell 0.1 percent with 1.6 percent and 2.4 percent decreases being registered for the respective costs of boat fuel and toys.

And Health and Personal Care prices climbed by 0.2 percent.

The average cost of personal care supplies and services rose 1.2 percent during the month and consumers paid more for facials, manicures and hair styling services.

CHART Bermuda Consumer Price Index