Bermuda residents continued to pay out more in October with the average price of consumer goods being 3.7 percent higher than a year ago.

The high rate of inflation continued a trend seen through the year with each month recording a rate of price inflation of three percent and higher.

In September, Bermuda?s inflation rate hit an 11-year high in September of 3.9 percent.

The Department of Statistics blamed the surge in costs on increases seen in the fuel and power and health and personal care sectors.

Both of those areas recorded prices increasing by 0.4 percent month over month, with the CPI?s report saying the overall rise in the Fuel and Power sector could be directly attributed to a five percent increase in the cost of gas and heating fuel.

A 0.5 percent rise in medical service costs pushed up health and personal care prices by 0.4 percent month compared to September while they are up 9.8 percent compared to last October.

Rents also rose, with the month-on-month increases standing at 0.1 percent while controlled properties were being let for 0.2 percent more. For the year, rents are up 2.5 percent.

Tobacco and liquor products saw no increases in the month, while clothing and footwear prices also saw no movement. The price of items that fall into the education, recreation and reading sectors also held steady.

This was in contrast to September when education costs soared 6.2 percent month on month, and 9.8 percent year on year.

Consumers were also squeezed at the gas pump for the third consecutive month with the cost of mixed gas rising 3.8 percent and premium cost being 0.1 percent more costly. Year over year, fuel and power costs are 6.1 percent and transport and vehicle costs are up 5.8 percent.

Consumers also saw food prices go up, although by a slim 0.2 percent.

The cost of household goods, services and supplies also advanced by 0.2 percent in the month. This was attributed primarily to an increase in the cost of furniture and textiles (+0.8 %) and gardening services (+0.5 %).

Although October?s price index showed prices were down marginally over September, and with it being the first time this year that the Index did not advance month on month ? the drop will likely be little comfort for those concerned that costs are getting too high.

Earlier this month, Eddie Saints, outgoing president of the Island?s largest employers? organisation, the Bermuda Employers? Council, spoke with concerns of the Island?s high rate of inflation warning that there could be company closures and job losses if the rate of cost increases was not contained. That was also the view taken by Philip Butterfield, CEO of the Island?s largest bank, the Bank of Bermuda.

Compared to Bermuda?s largest trading partners, the Island?s 3.7 percent rate of inflation weighed in higher than the 3.2 percent rate recorded in the US, the 2.3 percent inflation level in Canada and the 3.3 percent rate posted in the UK.

Concerns on Bermuda?s increasing costs were last month downplayed by Finance Minister Paula Cox who said that the Island was experiencing a reasonable rate of economic growth, with her adding that ?the CPI rate itself does not say much about the entire Bermuda economy?.

In February of this year, Ms Cox predicted, when delivering the annual budget statement, that inflation for 2004 would stand around three percent.

Ms Cox added that while inflation had averaged 3.2 percent during 2003, she expected it to stabilise in 2004.