The Island's rate of inflation jumped to 3.6 percent in July as consumers paid out more than they did a year ago for rent, fuel and power, according to the Consumer Price Index (CPI) released by the Department of Statistics yesterday.

July's inflation rate declined slightly from the level of price movement measured in June 2006 recorded at 3.7 percent.

Between June and July, the average cost of goods and services in the CPI remained unchanged.

The all items index stayed constant between June and July at 100.6 index points, this means that the basket of goods and services priced at $100 in April of now costs $100.60.

The rent sector was the strongest contributor to the 12-month increase in the CPI as rent prices jumped 3.6 percent.

The transport and vehicle and health and personal care also affected the increase in the annual rate of inflation.

The fuel and power sector registered the largest year over year increase, advancing 13.5 percent.

In the rent sector prices for controlled properties rose 4.6 percent year over year, while those not subject to rent control recorded an increase of 3.6 percent.

In July the rent sector jumped 0.4 percent, the overall increase in this sector was due primarily to a 0.5 percent rise in the average price of properties not subject to rent control. Properties under rent control experienced a 0.4 percent gain.

Also in July the transport and vehicle sector fell 2.1 percent overall. This decrease was attributed to lower prices for overseas hotel accommodations, down 1.1 percent.

An increase in car repair costs (+4.9 percent ) helped offset the declines in this sector. Gasoline prices remained unchanged for July 2006.

A strong increase in the fuel adjustment clause resulted in higher fuel and power costs in July. The sector advanced 2.0 percent as electricity costs rose 5.9 percent.

The average cost of items in the household goods, services and communications sector advanced 0.1 percent. The rise was attributed largely to higher funeral costs, up 4.4 percent.

A 0.7 percent decline in the average price of household supply products partially offset the increases in this sector.

The Food sector fell 0.5 percent in July and clothing and footwear prices rose 0.4 percent for the month. The increase resulted from higher prices for women's clothing (+1.3 percent) and men's clothing (+0.6 percent).

The tobacco and liquor sector rose 0.5 percent in July in response to a 1.3 percent increase in the price of wine.