graphs above show. The volume of retail sales (lower graph) increased by 1.9 percent compared to last year and recorded fourth straight months of improvement, something which has not happened since June-September 1988.

Inflation (upper graph) dropped to 2.6 percent, its lowest level in 12 months.

It also remained below the US rate, making the Island more attractive to American visitors. Inflation has stayed low because of the slow rate of increase in food prices (up 1.7 percent), rent (up 0.7 percent) and clothing (up 2.4 percent).