Travel, both overseas and local, boosted Bermuda's rate of inflation in January.

Bermudian consumers paid more for local goods and services this January than they did a year ago as the rate of inflation inched up a notch from 2.8 percent in January 2000 to 2.9 percent in January 2001.

Consumer prices on average advanced .3 percent during the month as the all-items index rose from 115 index points in December to 115.4 in January.

The strongest gains were seen in the transport and vehicles section of the index, which rose 2.2 percent. This was due largely to a raise of 7.7 percent in the cost of airline tickets and increases of 4.8 for premium fuel and 4.6 percent for mixed.

The effect was further heightened as travel agents experienced a higher volume of booking in January.

Higher prices for child care drove costs in the household goods and services sector of the index. Day care fees for nursery schools advanced 2.5 percent but were offset by decreases in a number of household items including writing materials (-.5 percent), detergents and bleaches (-.5 percent) and cleaning materials (-.1) percent.

In the food sector there was an overall decline of .1 percent. Strong declines were seen in imported lettuce (11.1 percent), baked beans (-9.4 percent) and fresh broccoli (-9.3 percent).

The fuel and power sector contracted .6 percent as the fuel adjustment clause dipped 7.8 percent, pushing down the cost of electricity by 1.3 percent.

In contrast, consumers paid more for a cylinder of propane gas as the average price rose 6.7 percent during the month.