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BERMUDA | RSS PODCAST

Inflation rate falls below 2%

Prices Up: An increase in the cost of prescription and over-the-counter medications was a leading driver of inflation

Bermuda’s inflation rate fell below two percent in September for the first time since February 2010.The rate was down to 1.9 percent from 3.1 percent the month before.Still, year over year, the cost of good and services was higher — driven by a strong rise in the cost of prescription drugs and over-the-counter medications, data just released from Bermuda’s Department of Statistics shows.“The health and personal care sector was the largest contributor to the 12-month increase in the Consumer Price Index,” the Department stated. “The average cost of prescribed and over-the-counter medicines increased. As a result, there was a six percent increase in average prices, year over year, in the sector.”Also included in the health and personal care category was a rise in the price of women’s hairstyling body massages, which increased by 4.4 percent and 3.1 percent respectively over the last month.An increase in food prices and a rise fuel and power costs also had a strong impact on the annual rate of inflation as price shifts in these sectors were three percent and 6.7 percent respectively.Fuel prices increased 2.8 percent in September for both the premium and mixed blends.Educational costs were also on the rise during the month of September — rising 2.1 percent.“Average fees for local private school tuition rose 2.8 percent, while overseas college tuition in the US and Canada increased 3.7 percent,” the report stated.The cost of day care for children was also up rising an average of 2.1 percent from the month before.The only two sectors to see a dip in pricing were the rent sector and the transport and vehicles sector. Rents were down 0.2 percent in September while rent prices for non-rent controlled properties declined 0.8 percent.The transport and vehicle sector slipped one percent largely due to a five percent decline in the cost of airfare and a 4.1 percent decrease in foreign hotel accommodation costs.