The cost of health and dental care helped push the cost of basic goods and services up 1.6 percent year on year, the latest Government statistics revealed today.

A major factor was said to be a 9.8 percent rise in health insurance premiums and a nine percent hike in dental costs, while the total cost of health and personal care rose by 7.6 percent.

The cost of food and education and recreation and reading also increased between October 2012 and last month — by 5.6 percent and 4.8 percent respectively.

But the rate of inflation dropped by 0,2 between September and October this year, settling at 1.6 percent — higher than the US or Canada, but a percentage point lower than the UK.

The news means that a basket of goods and services that cost $100 in April 2006 now costs $122.80.

The Consumer Price Index (CPI) month to month figures show that the transport and vehicle sector rose 0.5 percent in October, following a 2.2 percent increase the previous month.

The CPI report said: “The increase was largely attributed to a 1.1 percent hike in the average cost of premium fuel. In addition, air fares increased by 2.9 percent.”

The clothing and footwear sector jumped one percent between September and October — but the average cost of accessories like jewellery and handbags went up by 4.5 percent.

The cost of rent went up 0.1 percent in October, following no change the previous month, with the same increase being recorded for the rent controlled sector.

Food prices in grocery stores rose fell by 0.1 percent between September and October, compared to a 0.2 percent rise between August and September.

The price of tobacco and liquor remained unchanged month on month.

But the cost of fuel and power fell slightly over the same period, down 0.8 percent, which followed the 0.8 percent increase logged in September.