The rate of inflation in Bermuda dipped slightly in December to stand at 2.8 percent, according to statistics released last night by the Government.

The Consumer Price Index, which in Bermuda is used to measure inflation, fell below the 2.9 percent reached in November 2001, but is higher that the December 2000 figure, which stood at 2.5 percent.

One of the main factors in the change in the cost of a set basket of goods and services, was in the fall in the global price of a barrel of oil, which affected the fuel and power sector. The fuel adjustment clause fell dramatically, 21.2 percent in December, lowering the average cost of electricity to households by 2.7 percent.

The cost of food increased slightly, up 0.1 percent, with Catelli pasta rising 3.4 percent, leg of lamb up 3.9 percent, Ella sardines rising 0.5 percent, Hood whipping cream up 0.9 percent and oranges up 1.6 percent. But the cost of cantaloupes fell by 4.3 percent, potatoes dropped 2.5 percent and fresh carrots fell 3.7 percent.

The cost of rent rose 0.1 percent during the month and non-controlled rented property rose by 0.1 percent.

Tobacco and liquor prices rose fractionally by 0.1 percent with the average price of beer, wines and spirits each increasing by 0.1 percent.

Transport and vehicles sector contracted by 0.8 percent and consumers experienced lower motoring costs as the pump price for both premium and mixed fuel fell by 1.2 percent and 0.6 percent respectively. The average cost of airfares fell by 2.7 percent and hotel rates dropped by 0.2 percent.

The cost of education, recreation and reading edged up by 0.1 percent, with the cost of sporting goods and equipment rising 0.7 percent and the cost of upkeep for pets rising 0.1 percent. But the cost of boat fuel offset these factors as it fell 1.2 percent.

The cost of clothing and footwear, health and personal care and household goods, services and supplies remained unchanged.