Inflation fell marginally by 0.1 percent to 2.9 percent in November compared to three percent in October with consumers enjoying lower prices for food, transport and household appliances.

According to the Bermuda Consumer Price Index (CPI) released by the Statistics Department yesterday, consumer prices on average contracted 0.2 percent for the month and the all-items index fell from 118.3 index points in October to 118.1 in November.

Among the main sectors that comprise the index, Transport and Vehicles posted the strongest price movement, dipping 1.4 percent in November.

Compilers of the index said: "The main factors contributing to this downward movement were a decline in the cost of premium (-7.2 percent) and mixed fuel (-1.8 percent), and a decline in airfare costs (-1.6 percent)"

Prices in other sectors also contracted with prices in the food sector falling 0.3 percent in November.

"This was due primarily to price freezes on selected grocery items. These included Catelli pasta (-4.6 percent), margarine (-3.2 percent) Mazola cooking oil (-4.3 percent) Libby's green peas (-4.3 percent) and Chivers jam (-2.8 percent)," said the Statistics Department.

The Marketplace stores announced in mid-October that it would drop the prices of 24 staple items by ten percent and would freeze the prices of non-perishable goods until this month to help consumers weather the projected economic downturn following the September 11 attacks on the US.

Other grocers followed suit with similar price freezes and specials but accused the marketplace of pulling a marketing stunt with their price freeze.

In the housing sector, rent rose on both controlled and non-controlled properties by 0.1 percent.

Clothing and footwear remained static in November although the cost of dry-cleaning increased fractionally by 0.1 percent.

Smokers and drinkers paid 0.1 percent more for their stimulants in November with the average price of beer rising 0.2 percent and average liquor prices rising 0.1 percent.

Fuel and power advanced 1.2 percent in November partly due to a 10.8 percent increase in the Fuel Adjustment Clause (FAC) which pushed the cost of electricity up by 1.3 percent. Additionally, the cost of a cylinder of propane gas increased 1.0 percent.

The household Goods, Services and Supplies sector remained unchanged during November although there were some changes in the sub-components.

The average price paid for kitchen stoves declined 2.8 percent and the average price paid for television equipment declined by 2 percent. In contrast, the average cost of household washers and dryers increased by 0.6 percent.

The Education, Recreation and Reading sector contracted 0.2 percent. Notable changes were a 7.2 percent decline in the cost of boat fuel which was partially offset by an upward movement of 0.3 percent in the cost of pet supplies and upkeep.

Health and Personal Care cost advanced 0.1 percent in November, the statistics department saying: "Households paid more for personal care supplies and services such as toiletries and cosmetics (0.1 percent) and facials (7.1 percent).