The rate of inflation for March remained at 3.1 percent, according to figures released by Government yesterday.

According to a release on the Consumer Price Index from the Statistics Department, the high levels of inflation were blamed partly on increase in the costs of tobacco and alcohol.

This leaves the average rate of inflation for the past 12 months at 3.27 percent, with every month since April 2003 recording a level of inflation above three percent.

The lowest rate during the past year was in January, when it stood at three percent, and the highest was in September last year, when it stood at 3.8 percent.

These levels of inflation are well ahead of CPI measurements in the UK (1.5 percent March), US (1.6 percent March), Canada (0.7 percent March ) and Europe, where rates have been varying from 1.4 percent in Finland to 2.9 percent in Greece.

According to the report released yesterday the tobacco and liquor index posted the highest price increase, up to 4.6 percent after consumers paid more for beer, wine, alcohol and cigarettes.

The main stimulus for the upward movement was caused by a 12.3 percent hike in the price of cigarettes after Government increased taxes on cigarettes during the Budget.

Food prices increased by 0.4 percent with changes in prices in milk, up 3.3 percent, lamb leg per pound, up 2.7 percent, preserved meats, up 2.4 percent, baby food, up 1.7 percent and salad dressing, up 1.4 percent. There were some price reductions, including boneless pork loin, down 5.2 percent and imported lettuce, down 1.3 percent.

Rent prices rose again, up by 0.3 percent. On average the rental costs went up in non-controlled properties by 0.3 percent, and controlled went up by 0.3 percent.

Clothing and footwear went up by 0.5 percent as new stocks of clothes were brought in for the spring and summer seasons. The average price for women's clothing was up one percent, for children, up 0.4 percent and for infants, up 1.8 percent.

Fuel and power costs dropped by 2.1 percent after the fuel adjustment clause fell by 12.9 percent, which pushed down the cost of electricity by 2.2 percent.

In the household goods, services and supplies sector, prices remained, on the whole, static, but the cost of household supplies rose by two percent.

Transport and vehicles sector fell by 0.4 percent as airfares dipped by 0.7 percent and hotel accommodations costs fell 0.8 percent.

Education, recreation and reading edged up by 0.1 percent pushed up by an increase in the cost of boat repair and maintenance which rose by four percent.

Health and personal care posted an increase of 0.1 percent, with self-prescribed medicines up 0.4 percent and the price of toiletries and cosmetics up by 0.1 percent.