Bermuda?s consumers were hit hard in the wallet in June when the annual rate of inflation surged by 3.7 percent due to high increases in rents and fuel and power costs.

The Department of Statistics said yesterday the Consumer Price index (CPI) registered the gain after increasing by 2.7 percent in May.

And between May and June the average cost of goods and services in the CPI basket rose 1.1 percent.

The strongest contributor to the increase came in rents ? the biggest component of the Index ? which rose 3.5 percent compared to June, 2005. Compared to May, 2006, prices increased 0.2 percent, with rent controlled properties rising by 0.3 percent and non-rent controlled properties edging up 0.1 percent month over month.

Year over year, rent controlled properties jumped 4.7 percent year over year, while those not subject to rent control recorded an increase of 3.3 percent, according to the Department.

Worldwide increases in the price of oil also drove up the inflation rate.

The fuel and power sector registered the largest year over year increase with a 13.5 percent upsurge as recent increases in the fuel adjustment clause resulted in a 4.6 percent increase in June.

The cost of electricity rose 4.9 percent as a rate increase given to the Bermuda Electric Light Company (Belco) earlier this year took effect.

Belco warned in May that electricity prices were likely to increase in June with the average household likely to face a monthly $58 hike because of rising oil prices.

And the company said then that an even greater increase was likely when it purchased its next three-month reserve of fuel.

By the end of summer the average monthly bill could be $145 higher simply as a result of changes to the fuel adjustment levy being applied to all bills, the company said.

The transport and vehicle sector rose 5.1 in June, also due to higher oil prices.

The price of gasoline advanced 4.3 percent for premium blend and 4.1 percent for mixed blend due to stronger world wide demand. Airfare prices also jumped 2.7 percent as fares were increased to compensate for higher prices for jet fuel.

The health and personal care segment also jumped in June, rising 7.5 percent year over year as prices for prescription medicines rose 3.1 percent compared to May and ladies hair styling services jumped 4.4 percent.

Prices for health and personal care surged in 2003 and 2004 by seven percent and 9.4 percent, but levelled off in 2005 and through the first half of this year before the latest increase.

Other segments of the Index rose by less than the annual of inflation, with food up by 2.3 percent, clothing and footwear rising by 2.8 percent, tobacco and liquor up just 0.9 percent, goods, services and communications edging up by 1.5 percent and education gaining 3.2 percent.