Inflation slips to 3% – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

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Inflation slips to 3%

The annual rate of inflation fell back to three percent in October from its 19-month high of 3.4 percent the month before.

The figure was revealed in the Consumer Price Index, released by Government's Department of Statistics yesterday.

The fuel and power sector experienced the largest monthly increase of 3.9 percent in October, reflecting increases in the fuel adjustment clause on electricity bills and a rise in the cost of a cylinder of propane gas. Year over year, fuel and power rose 8.5 percent.

The main driver of year-on-year inflation was the cost of health and personal items, which rose 7.6 percent from 12 months earlier. Eye care services went up 6.8 percent, while the cost of doctors' visits climbed 6.1 percent.

Food prices were 3.6 percent higher than a year earlier and rose 0.5 percent during the month. Notable monthly price increases included stewing beef cubes (up 4.7 percent), butter (up 3.7 percent) and onions (up 3.6 percent).

Despite the challenging economy, rents show no sign of falling, according to the CPI data, which measured a 1.9 percent annual increase in rents.

The rent sector advanced 0.1 percent during October, the 12th successive monthly rise.

Prices fell 0.7 percent in the clothing and footwear sector during October, but were still 3.4 percent higher than last year.

The price of jewellery fell 3.1 percent during the month, while men's clothing decreased 1.4 percent and children's clothing 0.8 percent.

Transport and vehicles was another to rise year over year, by 3.2 percent, but recorded a fall during the month, of 0.9 percent. Foreign travel costs fell during the month, as hotel accommodation costs dropped 0.9 percent and airfares fell 3.4 percent.

The household good, services and communications sector edged down 0.1 percent for the month. Furniture prices decreased 3.2 percent.

Bermuda's three percent annual rate of inflation, compared to 1.2 percent in US, 2.4 percent in Canada and 4.5 percent in the UK.

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Published December 08, 2010 at 1:00 am (Updated December 11, 2010 at 7:36 am)

Inflation slips to 3%

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