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Rise in health costs approaches eight percent

Healthcare costs jumped by 7.7 percent last year compared to 2012, the latest consumer price survey has revealed.

The sector saw the biggest rise in costs — helping to propel the overall price of goods and services in Bermuda up 1.9 percent in December last year, compared to the same month the previous year.

And the Consumer Price Index (CPI) report for December last year said the price of food went up by 2.8 percent, while the cost of transport and vehicles accelerated upwards by two percent, compared to December 2012.

The CPI report said that the cost of healthcare went up 0.1 percent last December from the month before, while the cost of treatments like manicures, massages and facials went up by 1.7 percent.

But it added that the average price of toiletries, cosmetics and perfumes went down by 0.1 percent.

The CPI report also said that the rate of inflation for December 2013 went up by 0.6 percent compacted to the 1.3 percent recorded for November that year.

The report added: “Between November and December 2013, the average cost of goods and services in the Consumer Price Index increased 0.3 percent.

“The all items index increased to 122.4 in December — this means that the basket of goods and services that cost $100 in April 2006 now costs $122.40.”

The cost of transport and vehicles went up by 2.6 percent between November and December last year, fuelled by a 15.3 percent increase in overseas hotel accommodation and fuel prices, which rose 1.5 percent in December, after a 3.9 percent decrease the previous month.

But the cost of food in grocery stores fell by 0.8 percent in December compared to the previous month, attributed to holiday sales in supermarkets.

The cost of renting a home also went up over the same period, increasing by 0.1 percent overall, an increase of 0.1 percent in rent-controlled properties and 0.2 percent in accommodation not covered by controls.

The price of tobacco and liquor also went up by one percent between November and December 2013.

The report said: “The average cost of wines increased 0.2 percent during the month, following an increase of 1.2 percent in November.

But the price of household goods, services and communications remained unchanged in December last year, for the second month in a row and the cost of clothing and shoes remained static, following a 0.2 percent rise in November 2013.

Fuel and power also remained unchanged, after two months of consecutive declines.