Inflation fell slightly by 0.1 percentage points during December to 3.2 percent, according to figures released yesterday by Government, but is still higher than other leading nations.

Inflation has remained above three percent for most of 2003 ? with every month bar February and March over the range.

The average inflation rate for 2003 was 3.225 ? above the working estimate for Government of 3 percent.

Canada's annual inflation rate in December rose to 2.0 percent from 1.6 percent in November, it stood at 1.3 percent in Britain, the US core consumer price inflation in December 2003 was the lowest ever since 1962 at 0.8 percent.

The average cost of goods and services measured in the consumer price index (which is used to measure inflation) remained fairly constant in Bermuda between November and December 2003.

Within the nine sectors used to measure the index, fuel and power posted the strongest movement for the third month in a row, rising 0.4 percent between November and December 203.

The fuel adjustment clause climbed 2.6 percent during the month pushing up the cost of electricity by 0.4 percent.

Consumers also paid more for heating fuel in December as the cost of propane gas rose by 1.4 percent. Food prices advanced 0.1 percent during the month of December, and within the food basket used to measure this, grapes rose 3.9 percent, bottled water up 1 percent, eggs up 0.5 percent and butter 0.8 percent.

The cost of rent rose by 0.1 percent during the month as average rental costs for controlled properties increased by 0.3 percent. But the cost of non-controlled property remained relatively unchanged.

The clothing and footwear index remained unchanged for the second month in a row and the tobacco and liquor sector was also static. The average costs of household goods, services and supplies fell fractionally from the previous month, according to the report. Writing materials, paper supplies, food wraps and trash bags all rose by 0.1 percent. But this was offset by the cost of detergents and bleaches and household supplies such as light bulbs, matches and batteries falling by 0.2 percent and 0.3 percent respectively.

The transport vehicles sector edged up 0.2 percent mainly due to a 1 percent increase in the cost of cars and a 0.2 percent rise in premium and mixed fuel. Foreign travel and hotel accommodation remained unchanged in December. Education, recreation and reading also remained static during December. Increases in boat repair and maintenance costs rose by 0.1 percent, but this was offset by a 0.1 percent decline in pet care costs.