Inflation edges up to 2% in July
Bermuda’s annual inflation rate climbed to 2 per cent in July, up from 1.7 per cent in June, as higher costs in travel, healthcare and household energy continued to push prices upward, according to the latest Consumer Price Index released by the Department of Statistics.
The All Items Index now stands at 120.3, meaning the same basket of goods that cost $100 in April 2015 costs $120.30 today.
The report shows broad but moderate movement across most major spending categories over the past year.
Health and personal care recorded one of the biggest increases, rising 3.8 per cent, driven by higher health-insurance premiums (up 4.6 per cent) and dental costs (up 5.9 per cent). Fuel and power climbed 4.3 per cent, largely reflecting a rise in electricity rates. Rent, the largest component of the index, rose 2.4 per cent.
Transport and foreign travel remains a major pressure point. That division rose 2.6 per cent year-on-year, but the report shows foreign travel alone increased 9.7 per cent, making it one of the biggest contributors to July’s overall inflation rate.
Food prices, which surged in prior years, continued to stabilise, rising 1.1 per cent over the 12-month period. Several key subgroups fell compared with last July, including dairy and eggs (-2.7 per cent), vegetables (-2.6 per cent) and flours and pastas (-3.3 per cent).
On a month-to-month basis, overall prices increased 0.4 per cent between June and July. The largest jumps came from clothing and footwear (up 2.6 per cent) and transport and foreign travel (up 2.1 per cent). Fuel and power eased slightly (-0.3 per cent), while food rose by just 0.1 per cent. Rent increased 0.2 per cent.
The report also places the latest figures in a longer-term context. Bermuda’s inflation peaked at 5.1 per cent in September 2022, during the global post-pandemic surge, before easing through 2023 and into 2024. Last year’s annual average increase was 1.9 per cent, compared with 3.3 per cent in 2023 and 4 per cent in 2022.
Average retail prices included in the report show some of the movement behind the index. A dozen eggs cost $7.55 in July, down from $7.95 in June, while iceberg lettuce rose from $5.98 to $6.86. A case of beer averaged $61.78, and a carton of cigarettes averaged $157.47.
• For the full CPI report, see Related Media
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