Consumers paid two percent more for goods and services in September 2002 than they did a year ago but the rate of inflation was unchanged from the previous month.

The news that the rate of inflation had held steady was greeted by Finance Minister Eugene Cox as good news: "We are obviously very happy that in September the rate held steady (from the previous month) and was two percent year over year."

Mr. Cox said he expected the rate of inflation "to remain modest - around two percent. Of course we would be happy if it went below two percent, but we predict it will remain around that level."

Although the rate of inflation was steady for September, certain sectors - such as education - saw significant increases according to Consumer Price Index (CPI) statistics released yesterday.

And consumers were overall, paying slightly And consumers overall, were paying slightly more for goods and services than the previous month, with prices increasing an average of 0.3 percent between August and September.

Based on the CPI basket of goods and services statisticians use to measure price changes, the rate of inflation was driven higher in comparison to last year principally by increases in the education, recreation and reading sector, which posted the strongest price movement with local and overseas educational expenses jumping 5.8 percent.

Broken down, the annual rate of tuition fees for private schools rose 5 percent above the previous month, whilst fees at overseas colleges and universities advanced 6.5 percent.

The cost of childcare also went up with nursery school fees climbing 1.5 percent.

The jump in educational costs this September followed a jump during the same period last year with prices for private education going up 4.2 percent month to month in September, 2001.

Looking at the significant jump in the cost of private education, Mr. Cox (pictured) said: "This is the cost of private school and overseas education. It is not our (Government) policy but the private and overseas schools which are impacting this increase."

Bermuda Chamber of Commerce president Charles Gosling also welcomed the news that the rate of inflation had held steady but said he had hoped it might have gone down. And Mr. Gosling voiced some concerns over the high cost of private education: "Over the last five years or more the cost has been increasing at about double the cost of living".

And he cited, as an example, the fees for one child, aged ten or eleven and at an Island private school, as increasing some 34 percent over the previous five to six years.

It also became pricier to give kids extra-curricular tuition with the cost of monthly fees for recreational lessons, such as ballet and piano going up 2.7 percent during the month.

Consumers also paid more in the reading sector, with the average cost of magazines climbing 2.1 percent during the month. But consumers got some breaks - especially when it came to running their cars or boats with fuel costs dropping 11.3 percent.

The cost of electricity however increased 1.9 percent from August to September while the cost of a cylinder of propane gas remained unchanged.

And the cost of food saw no overall change although some grocery items did show "notable price movements" with lettuce, green peppers, broccoli, potatoes and canned stewed tomatoes fetching anywhere from one to four percent more at the grocery store checkout counter.

On the flip side the price of a whole cantaloupe was five percent cheaper and celery and sweet pears fell 2.4 and 1.3 percent in price, respectively.

Rent - the biggest single component of the CPI, accounting for 27.6 percent of its value - increased 0.2 percent during the month, and landlords faced a 1.5 percent increase in the cost of repair and maintenance.

Tobacco and liquor prices also rose 0.1 percent. The Department of Statistics said the increase could be attributed to slightly higher prices for wines and spirits.

Clothing and footwear also saw an advance of 0.4 percent which came from marginal increases in men, women and children's clothing.

Higher prices for men's underwear was said to be largely responsible for a 0.2 percent increase in the cost of men's clothing during the month.

And children's clothing also cost 0.4 percent more during the month while the average purchasing cost of women's clothing rose 1 percent.

Meanwhile, Bermuda's rate of inflation remained higher in September than figures reported in the United States and United Kingdom, where year-over-year inflation rates stood at 1.5 percent and 1.7 percent respectively.

The rate of inflation in Canada was however reported to be 2.3 percent for the month.

The fact that the Island had a modestly higher inflation rate than the US and UK was something that Mr. Gosling said was to be expected because of the higher costs associated with importing goods.