Inflation returns on eve of Budget
Inflation rose to its highest level in more than a year as the consumer price index to September, the Government’s latest figures, ticked higher.
Consumers paid 2.2 per cent more for goods and services than they did in September 2024, according to the Consumer Price Index report.
The year-over-year percentage change had not been that high since August 2024.
The numbers have been released as the Government goes to Parliament on Friday with estimates of revenue and expenditure for the coming fiscal year. The Budget Statement is sure to extol the virtues of local economic policy.
The 2026-27 Budget is sure to include measures designed to steer a steady economic course and improve the fortunes of Bermudians, in the face of a powerful US economy, but with increasing concerns about the global outlook.
Bermuda’s annual average inflation rate peaked at 4 per cent in 2022 before easing to 3.3 per cent in 2023 and 1.9 per cent in 2024.
The September figure represents a 0.3 percentage point increase from last August’s 1.9 per cent annual rate, signalling a modest re-acceleration in price growth after a period of relative stability. The month-over-month change pushed the all-items index from 120.4 to 120.8.
A basket of goods and services that cost $100 in April 2015 now costs $120.80.
Health & Personal Care recorded the largest annual increase among major divisions, rising 3.9 per cent year-over-year.
Within that category, health insurance premiums were up 4.6 per cent and dental care climbed 5.9 per cent compared with September 2024.
Food prices increased 2.5 per cent over the year, continuing the pressure on household budgets. Meat prices were up 4.4 per cent year-over-year, fruit rose 5.5 per cent, and poultry increased 5.4 per cent.
The monthly inflation rates for the food division from September 2015 to September 2025 show significant fluctuation, with notable changes occurring in January 2017, when the inflation rate surged 3.3 percentage points, and in April 2017, when it experienced a sharp decline of 1.5 percentage points.
Rent, the largest weighted component of the CPI basket, climbed 1.9 per cent annually.
Education, Recreation, Entertainment & Reading rose 2.5 per cent compared with a year earlier, while Transport & Foreign Travel increased 2.4 per cent.
Clothing & Footwear prices were up 3.2 per cent over the year, although Tobacco & Liquor edged down 0.1 per cent.
• For more on the Consumer Price Index, see Related Media
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