May inflation jumps as airfares take off
The rate of inflation rose 1.4 per cent in May as airfares soared more than 27 per cent, the government said today.
The year over year increase in the Consumer Price Index was the highest since August, 2019 when it was 1.5 per cent.
The rise in airfares drove the Transport & Foreign Travel segment the Consumer Price Index up 6.4 per cent, Minister for the Cabinet Office, Wayne Furbert, said.
He said: “The Transport & Foreign Travel sector was the largest contributor to the annual increase in the CPI (+6.4 per cent). The average cost of airfare rose 27.2 per cent.”
The Education, Recreation, Entertainment & Reading sector also impacted on the annual rate of inflation, as prices in this sector rose 1.6 per cent.
The rises were offset by the Fuel & Power and Rent sectors, which declined by 0.8 per cent and 0.5 per cent, respectively.
The Minister said: “Between April 2021 and May 2021, the average cost of goods and services increased 0.3 per cent.”
Additional areas of note between this April and May include:
• The Transport & Foreign Travel sector moved up 3.7 per cent over the previous month, reflecting increases in the average cost of airfares (+12.4 per cent) and overseas hotel accommodations (+7.1 per cent).
• The Household Goods, Services & Supplies sector was up 0.3 per cent for the month. On average, consumers paid 37.2 per cent more for air conditioners.
• The Rent sector was down 0.7 per cent as the average cost of properties not subject to rent control slipped 1.6 per cent.
• On average food prices dipped 0.1 percent in May. The main items contributing to the decrease were sweet biscuits (-9.9 per cent), bagged oranges (- 3.5 per cent) and cantaloupes (-3.2 per cent).
Note: In summary, each month, the Government measures the annual rate of inflation and the monthly rate of inflation – Annual are changes from same month last year, and monthly are the changes from month to month.
The May 2021 Consumer Price Index is available online at www.gov.bm/bermuda-business-statistics
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