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Inflation hits highest point since 2017

Bermuda’s annual inflation rate increased at the highest rate in four years in July, increasing to 2.2 per cent.

The rise was a full percentage point higher than June’s figure of 1.2 per cent and the highest since inflation hit 2.4 per cent in March 2017

The Consumer Price Index report said between June and July, the average cost of goods and services in the CPI increased 0.5 per cent.

The all-items index jumped from 107 to 107.5 in July.

This means that the basket of goods and services that cost $100 in April 2015 now costs $107.50.

In the year-to-year analysis, the transport and foreign travel sector continues to be the largest contributor to the 12-month increase in the CPI, up 11.3 per cent, as the average cost of airfares increased for a fourth consecutive month, rising 33.2 per cent.

The health and personal care sector and the education, recreation, entertainment and reading sectors also had strong impacts on the annual rate of inflation, as price shifts in these sectors measured 2.7 per cent and 2.6 per cent, respectively.

After a 14.1 per cent decline in June, the fuel and power sector rose 2.8 per cent as the fuel adjustment clause increased 9 per cent in July.

The transport and foreign travel sector rose 1.5 per cent. The rise in this sector was attributed to increases in the average cost of airfares, up 5.8 per cent, and premium fuels, up 1.7 per cent.

The clothing and footwear sector increased 1.1 per cent in July. Leading the increase were the average price of women’s blouses, up 16 per cent, and jewellery, up 6.9 per cent.

The rent sector was up 0.2 per cent as the average cost of properties not subject to rent control and properties under rental control advanced 0.4 per cent and 0.1 per cent, respectively.

The food sector edged up 0.1 per cent for the month. The main items contributing to the rise were the average cost of canned tuna fish, up 5 per cent, a 3.7 per cent rise in the cost of canned peanuts, and fresh tenderloin, up by 3.4 per cent.

The education, recreation, entertainment and reading sector moved up 0.1 per cent in July as admission to the annual Cup Match Classic rose 25 per cent.

The tobacco and liquor sector rose 0.1 per cent. The average cost of beer was up 0.6 per cent, while the average cost of spirits fell 0.2 per cent.

After the 0.7 per cent rise in June, the health and personal care sector was unchanged for the month.

The household goods, services and supplies sector was static for the month.

Visit: www.gov.bm/bermuda-business-statistics for a copy of the July 2021 CPI.

Air fares rose 33.2 per cent year over year for July

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Published November 09, 2021 at 8:35 am (Updated November 09, 2021 at 8:35 am)

Inflation hits highest point since 2017

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