Inflation jumps to 3.5 percent in April
The Island?s rate of inflation jumped to 3.5 percent in April, as consumers shelled out significantly more than a year ago for fuel and power, and saw higher rents imposed.
April?s jump, ending ten months of the Island?s inflation rate tracking in between 2.5 percent an 2.9 percent, means shoppers are paying $135.40 for the same goods and services that cost $100 in January 1995.
Compared to a month earlier, goods and services were, on average, 0.8 percent more costly, according to data released in the monthly Consumer Price Index compiled by Government.
Driving April?s prices higher was the fact that consumers paid 8.1 percent more for fuel and power over April 2005, according to yesterday?s CPI bulletin. And on rental fronts, dwellers in controlled rent properties paid landlords an average of 4.5 percent more. Renters not subject to rent control saw increases in the range of three percent.
April?s spike in costs compares to an average inflation rate of 2.7 percent in the first quarter of the year, and 3.1 percent for the whole of last year.
Numerous goods and services also cost more in April than a month earlier. Rents rose 0.2 percent, and the cost of running a vehicle largely attributed to a 1.5 percent increase in the overall cost of items that fall under the transport and vehicle category of the CPI basket of goods and services.
At the pump, consumers paid 6.7 percent more for premium gas, while mixed gas pricing rose 6.5 percent. Pocketbooks were also hit by the five percent increase in vehicle licensing fees brought in under this year?s Budget. Travelling overseas also cost marginally more, with airfares rising 0.3 percent, month to month.
Other sectors where consumers were charged more included on health and personal care items, largely because of rising health insurance premiums, which advanced 9.5 percent. And the clothing and footwear category recorded an overall increase of 0.3 percent, as dry cleaning (2.8 percent) and shoe repair (6.1 percent) costs rose.
Buying liquor and cigarettes also cost consumers more at the cash register. Beer pricing edged up 0.2 percent over March, spirits were 0.3 percent more, and a carton of cigarettes took 0.5 percent more out of wallets.
Fuel and power costs, a sector comprising items like electricity and heating fuels and doesn?t include gas station receipts, largely drove the jump in inflation over the past year but from month-to-month the category recorded a 0.1 percent decline.
This was attributed to a slight decline in the price of propane gas, according to the bulletin.
Shoppers also found it more pricey to buy some household items, with this area seeing an overall price increase of 0.3 percent.
Floor coverings were one area where consumers faced higher rates (5.4 percent) and household supplies advanced 0.9 percent.
The only area where shoppers got a break in April was in the grocery store aisles. Food costs fell 0.1 percent from March.
The main items contributing to the marginal decline were cheaper frozen spare ribs (3.7 percent) and canned vegetables (1.6 percent).
While significantly higher than in recent months, the Island?s 3.5 percent April rate of inflation was on par with its closest trading neighbour, the United States, but higher than Canada?s (2.4 percent), and the UK?s (2.6 percent).
