Bermuda?s rate of inflation continued to rise in July with prices an average of 2.8 percent higher than a year ago, according to figures released by the Department of Statistics.

The Consumer Price Index, which is used in Bermuda as a key economic indicator and as a measure of inflation, recorded the same level of price movement in June 2005 as July 2005 with prices advancing an average 0.2 percent month-on-month. The all items index, which is made up of a basket of goods which an average household would purchase, rose from 131.3 in June to 131.5 July.

A basket of goods and services which cost $100 in January 1995 now costs $131.50 with rent, transport and vehicles, education, recreation and reading and food sectors the largest contributors to the twelve month increase of the CPI, according to the Department of Statistics.

Upward pressure was exerted primarily by higher prices for gas, rent, tuition and grocery items. Average rent of controlled and non-controlled rental properties rose 0.3 percent in July, a 3.2 percent increase over the same month of 2004.

The transport and vehicles sector recorded a 5.7 percent increase over July 2004 as consumers paid higher prices at the pump. The average cost of premium gas increased 3.8 percent along with mixed gas which rose 3.7 percent during the month. Gasoline prices jumped 11 percent between July 2004 and July 2005 and have been climbing since January 2005, with one exception in May. There were also notable increases in cycle repair and maintenance fees which rose 9.4 percent in July. Car repair and maintenance fees rose 1.3 percent while the average cost of both new cars and new cycles were 0.3 percent higher than the previous month.

The fuel and power sector advanced 4 percent over July 2004 as electricity costs increased 2.3 percent for the month and the Fuel Adjustment Clause (FAC) reached a record high of 5.9 cents per kilowatt hour up 11.3 percent from the 5.3 cents recorded for the previous six months. Local and overseas tuition fees and prices of grocery store items also helped drive the increase with consumers seeing a 2.8 percent increase in the cost of food purchased from grocery stores in July 2005 compared to the same period a year earlier.

The price increases were however offset by lower prices for clothing and footwear, along with health insurance premiums. The clothing and footwear sector had the largest impact on the index decreasing 3.9 percent from June 2005 or 1.9 percent from July 2004. ?The decline in the sector was directly attributable to clearance sales held by one of the Island?s major department stores,? the Department of Statistics said in its report.