Cheaper airfares and lower gas station fuel prices were part of the reason for the monthly inflation rate dropping from 3.4 percent to 2.8 percent between December and January.

The latest Consumer Price Index figures also show a fall in clothing and footwear prices in January. Women’s fashions recorded the biggest fall with prices dropping by an average of eight percent, while men’s clothing also became slightly cheaper.

And while overall food prices nudged up a small amount there was a more noticeable increase in the cost of cod fish, eggs and carrots.

For the past four years the Bermuda yearly inflation rate has ranged between 3.6 and 3.1.

The January figure places Bermuda below the UK monthly level of 4.2 percent but above both the US and Canada where the inflation rate is 2.1 and 1.2 percent respectively.

A year-on-year analysis shows rent as one of the biggest risers, up four percent compared with January 2006. In the rent-controlled sector the yearly rise was 4.5 compared to 4.2 percent amongst private renters. Looking at January in isolation the rent-controlled sector advanced 0.5 percent but there was no noticeable rise in the private sector.

Lower airfares helped the transport and vehicles category of the index fall by two percent. Gas prices for premium and mixed blends dropped more than three percent each to help lower the overall inflation figure as released by the Department of Statistics.

Between December and January the breakdown of figures shows:

[bul] Food prices up one percent, with cod fish (5.2 percent), eggs (6.2 percent) and carrots (three percent) the bigger movers.

[bul] Transport and vehicles sector down two percent.

[bul] Tobacco and liquor up 0.1 percent, with cigarettes increasing in price by 0.3 percent and spirits by 0.4 percent.

[bul] In the fuel and power sector cooking gas went up 1.3 percent, while the sector rose 0.1 percent.

[bul] Health and personal care rose 0.1 percent, although there were higher prices for toiletries, cosmetics and perfumes (1.3 percent).

The average cost of goods and services in January this year, compared with December, was 0.2 percent lower. The figures show that a basket of goods that cost $100 last April would have risen to $101.40 if bought in January.