The rate of inflation in Bermuda has continued to fall, with figures released from Government yesterday showing that in January the cost of living had risen by 2.3 percent.

Inflation started to slow in December, when the Consumer Price Index showed that prices in that month stood at 2.5 percent, down from the 2.8 to 3.1 percent seen during the rest of 2001.

The Consumer Price Index, which works out the price changes in an average basket of goods and in Bermuda is used as a measure of inflation, stood at 118.0 for January, up from 117.9 a year earlier.

The Department of Statistics report for January said that prices for nearly half of the sectors remained unchanged from the previous month, and slowed the overall rate of price hikes.

The cost of fuel and power fell during the month by 1.4 percent, which was the steepest drop recorded in the index.

The fuel adjustment clause, which adjusts the cost of fuel in relation to the world cost of a barrel of oil, fell by 13.5 percent, which was due to the fall of the cost of oil prices - and pushed the average cost of electricity for a Bermuda household down by 1.4 percent. The average cost of a cylinder of gas fell by 1.5 percent.

Food prices increased 0.2 percent during the month of January. The largest jump in price was in a head of lettuce rose 14.3 percent, cucumbers up 8.5 percent, cantaloupes up 3.9 percent, cheddar cheese rose 0.7 percent and beef cubes up 0.3 percent. Some items fell in price, including oranges down 2 percent, cod fish 1.6 percent, sweet pears 1.3 percent, broccoli down 0.8 percent and lamb chops 0.3 percent.

Rent rose 0.1 percent - in non-rent controlled properties it rose 0.3 percent and in rent controlled properties it went up 0.1 percent.

Clothing and footwear costs remained the same and tobacco and liquor sales remained relatively static, with just the average price of spirits increasing 0.1 percent.

The sector of household goods, services and supplies rose 0.3 percent. The average cost of childcare rose by 2.9 percent.

The transport and vehicles sector jumped 0.6 percent as consumers paid more at the pump as the price of both premium and mixed fuel increased by 2.9 percent and 2.1 percent respectively. The average cost of airfares rose 0.9 percent and hotel rates were up 1.3 percent.

Education, recreation and reading remained unchanged at the sector level, but the cost of upkeep of pets fell by 0.4 percent but the cost of boat fuel rose 2.9 percent.

The cost of health and personal care remained unchanged overall in January. Within the sector the personal care the cost of toiletries, manicures and massages rose by 0.2 percent, 11.5 percent and 5.3 percent respectively. But these increases were balanced by a decline in the cost of ladies hairstyling fell by 1.8 percent.