Inflation is running at 3.4 percent, fuelled by rising rent prices which jumped 4.4 percent.

Statistics for August, released by Government yesterday, show inflation went down from the 3.6 recorded in July.

The fuel and power section registered the largest year-on-year increase with a 16.5 percent surge as both electricity and cooking gas went up.

Rent rose for controlled properties by 4.5 percent over the last 12 months and 4.8 percent for properties not subject to rent control.

The transport and vehicle sector actually fell due to lower airfares from New York, Toronto and London while car prices fell 0.4 percent.

Bermuda?s inflation rate of 3.4 percent is lower than America?s 3.8 percent and on par with Britain?s although Canada has an inflation rate of just 2.1 percent.

In 2002 Bermuda?s inflation rate stood at 2.3 percent but it rose to 3.2 percent in 2003 and 3.6 percent in 2004 before dipping to 3.1 percent last year.