Shoppers paid out 2.5 percent more for goods and services in January than they did a year earlier, Government statistics released yesterday show, reflecting an increase in the prices being charged by every sector.

The monthly Consumer Price Index, showed that costs, month on month, were 0.3 percent higher. December?s rate of inflation was also 2.5 percent higher than a year earlier.

The biggest contributor to increased costs was higher rental rates, which were an average of $29 more expensive for every $1,000 paid in rent. Consumers were also hit at the till by the higher worldwide cost of crude oil pushing local gas and electricity rates higher.

There was no decrease in the cost of items that make up a basket of goods that Government monthly tracks the price of, either on a yearly or monthly basis.

However, January?s 2.5 percent inflation shows a moderation in pricing increases, down from a steep 4.1 percent in January 2005. Bermuda?s rate of inflation has been below three percent since last June.

January?s inflation rate was largely attributed to a 2.9 percent yearly increase in rents, as well as some other everyday costs rising. For example, consumers paid more at the grocery till, on top of paying more for gas and power.

Month-on-month, renters in January paid 0.5 percent more on controlled rent properties, and 0.3 percent more on uncontrolled rents. While gasoline and electricity costs were higher than a year earlier, and also higher than in December, gas prices haven?t reached highs posted last September and October, according to a Government index that tracks local price fluctuations.

Consumers also paid out more on transport costs as car repair and maintenance fees rose.

Overall, the cost of goods in the transport and vehicle sector were 0.6 percent more costly to buy, month on month. The fuel and power sector advanced 1.6 percent, as electricity pricing rose 1.8 percent during the month, as the Fuel Adjustment Clause used by Belco on what it charges for electricity, jumping 7.1 percent, month on month.

Higher global fuel costs also impacted the education, recreation and reading sector, with the fuel prices affecting this area (including boat fuel, and the fuel costs posted by airlines) rising 3.5 percent.

It also was more expensive to buy pet care supplies, with those goods rising 0.6 percent.

At the grocery till, shoppers paid out 0.4 percent more, as the cost of the following items rose: canned vegetables (+1.7 percent); rice (1.2 percent) and sugar (2.5 percent).

Liquor and tobacco cost slightly more than a year ago, but prices were unchanged from December.

And consumers paid the same in January as a month earlier for households goods, health and personal care items, clothing and footwear.