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Inflation rate negative for third month

Goods and services: consumers paid 0.7 per cent less for a basket of goods and services included in the Consumer Price Index in September, than they had in the same month last year (File photograph)

Bermuda’s annual inflation rate remained negative for a third consecutive month in September. The rate was -0.7, the same as reported in August.

In July the island recorded its first negative inflation rate since 1965.

Consumers paid 0.7 per cent less for a basket of goods and services included in the Consumer Price Index in September, than they had in the same month last year.

Between August and September, the average cost of goods and services in the CPI declined 0.4 per cent. The all-items index fell from 105.8 to 105.4 in September. This means that the basket of goods and services that cost $100 in April 2015 now costs $105.40.

The tobacco and liquor sector rose 0.9 per cent for the month. The average cost of wines and beer rose 2.7 per cent and 0.2 per cent, respectively.

The food sector grew 0.3 per cent in September. Notable price changes occurred in the average cost of fresh and frozen turkeys, up 5.7 per cent, bagged apples, up 2.3 per cent, and roasting chickens, up 1.8 per cent.

Wayne Furbert, Minister for the Cabinet Office, said: “The rental sector continues to have a strong influence on the annual rate of inflation as prices declined by 4.2 per cent, as properties not subject to rent control contracted by 9.5 per cent year-over-year. This means that on average rents fell by 9.5 per cent between September 2019 and September 2020. The transport and foreign travel, and fuel and power sectors also impacted strongly on the annual rate of inflation as price declines in these sectors were 5.3 per cent and 5.8 per cent, respectively.”

On a monthly basis, the rent sector saw a 1.3 per cent decline, the health and personal care sector had no price movement. The education, recreation, entertainment and reading was up 0.1 per cent in September.

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Published December 11, 2020 at 5:03 pm (Updated December 11, 2020 at 7:01 pm)

Inflation rate negative for third month

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