Rising fuel and power costs have sparked a sharp hike in inflation which hit 2.5 percent in November.

The rate rose from 2.2 percent in October and was the highest rise since March.

Government blames uncertainty in the oil markets caused by tension in the Middle East for a rise in fuel and power prices of 0.6 percent.

Electricity rose 0.4 percent during November while propane cylinders cost 2.9 percent more.

Rent and food were virtually unchanged, clothing and footwear did not rise while tobacco and liquor went up by 0.3 percent.

Household goods, services and supplies were relatively static but VCR prices dropped as people switch to DVD players.

Car prices rose by 2.1 percent while mixed fuel rose 0.9 percent. Premium gasoline fell by 0.3 percent.

At 2.5 percent Bermuda's inflation rate is above the US rate of 2.2 percent but below the UK figure of 2.6 percent and Canada's 4.3 percent.