Inflation soared to an 18-year high driven by rising gas prices, according to the latest figures released by Government.

The Consumer Price Index (CPI) revealed that inflation increased by 5.3 percent in April 2008 from the same period last year, the first time the rate has reached that figure since May 1990.

The transport and vehicles sector was the main contributor to the 12-month rise, with sustained pressure on the world oil markets resulting in higher gas prices for the premium blend, which was up 12 percent year-over-year.

Inflation surged from the 4.2 percent rate measured in March 2008, with the average cost of goods and services in the CPI rising 1.5 percent between March and April this year. Meanwhile the all-terms index increased from 107 to 108.6 points in April — that figure has steadily risen since 1993 from 71.2 points, with the biggest increases of almost three percent to four percent being made incrementally since 2003.

Compared to the US (3.9 percent) and the UK (three percent), Bermuda's inflation rate is considerable higher, although it does compare more favourably to emerging nations such as China (8.5 percent).

The fuel and power and transport and vehicles sector led the way, up 34.5 percent and 11 percent respectively for April 2008 from the same time last year as the fuel adjustment clause rate held steady and premium and mixed blends respectively climbed seven percent and 6.8 percent as a result of higher fuel prices.

In addition, vehicle licensing and insurance costs advanced 7.6 percent on average, while foreign travel costs including airfare and hotel accommodation edged up 1.1 percent, with price movement rising 2.5 percent overall from the previous month.

Food prices increased by an average of one percent in April, including a 3.4-percent rise in beef and a 3.1-percent increase in rice, while eggs were up 2.5 percent.

The rent sector also advanced 0.4 percent, mainly down to the 0.4-percent rise in rent-controlled properties as homeowners continued to make improvements to their housing stock, while rental units not subject to rent control also increased 0.4 percent.

Clothing and footwear climbed 7.3 percent, with women's clothing up 7.4 percent and men's 2.3 percent, while the household goods, services and communications sector rose one percent for the month, as furniture price increases of 5.8 percent accounted for a large part of that rise.

Health and personal care was up 5.1 percent in response to a 8.4-percent increase in the average cost of health insurance premiums, with self-prescribed medicines advancing 2.5 percent at the same time.

Tobacco and liquor also climbed 2.9 percent, reflecting increases in the average price of wine (0.2 percent rise), spirits (1.3 percent) and cigarettes (10.7 percent).