The September rate of inflation remained unchanged from August at 2.7 percent.

This came despite a 0.1 percent dip in the cost of fuel, which has been kept high by the world oil crisis. The high cost of fuel has pushed up the cost of living around the world, including in Bermuda.

The fall in oil prices was offset by an increase in the price of school fees.

Between August and September, households paid 0.4 percent more for the goods and services in the CPI basket. The all items index shifted from 114.1 in August to 114.6 in September.

The strongest price movement was in the education, recreation and reading sector. This index went up 2.1 percent, which was due mainly to a hike in the cost of school fees.

Private education fees rose 5.3 percent, while overseas tuition costs increased by 4.3 percent. The cost of recreational lessons, particularly, dance lessons rose 7.6 percent.

Fuel and power fell 0.1 percent in September. The fuel adjustment clause dipped 1 percent, and as a result households had lower electricity costs for the month of September.

Health and personal care prices went up by 0.7 percent, with the cost of prescription medicine up 14.2 percent. But this cost was partially offset by a fall in the over-the-counter medicines, down 0.2 percent, and personal care supplies and services, down 0.1 percent.

The cost of food rose 0.3 percent in the month. Within the food basket, imported lettuce rose 16.6 percent, onions up 11.5 percent, black grapes 5.2 percent, carrots 5.2 percent, celery 4.1 percent, local and imported potatoes, 3.7 percent, ribena 3.2 percent and spare ribs up 3.2 percent.

Prescription drugs costs jump Rent prices climbed 0.2 percent, with the average rents for decontrolled properties up 0.2 percent. Repair and maintenance and cost were also on the rise increasing by 1.2 percent.

Clothing and footware advanced 0.2 percent. Average prices for boys' shirts and sportswear jumped 11.5 percent. However, there were offsetting falls in the average cost of men's clothing, which is down 2.7 percent, women's clothing down 0.8 percent and infant's clothing down 2.4 percent.

The cost of tobacco and liquor remained unchanged from the previous month.

Household goods, services and supplies rose 0.7 percent and the household goods sector rose 2.5 percent as higher prices were paid for furniture, furnishings and textiles.

Childcare services also increased with day care fees for nursery schools going up 4.9 percent.

The cost of transport and vehicles fell 0.3 percent, with the capital cost of buying private cars going down by 0.3 percent. Consumers also took advantage of the seasonally discounted airfare prices posted during September, which were down two percent.

CHART The rising cost of health: The price of prescription medicines went up 14.2 percent in September this year, but the cost of over-the-counter medicines fell by 0.2 percent.