Inflation is up to its highest rate - 3.4 percent - since 1991, according to figures released yesterday by Government.

The figures for the Consumer Price Index for August was up from 3.1 percent in July.

The CPI, which is used as a measure for inflation, has not been as high as this since September, 1991, when it stood at 3.6 percent, according to the Statistics Department.

The latest figures released for inflation around the world yesterday on Bloomberg had the CPI in the US at 2.2 percent, 2.1 percent in Europe, 2.0 percent in Canada, 2.9 percent in the UK and 0.3 percent in Japan.

Last August the rate of inflation stood at two percent, but has been steadily climbing, rising to 2.8 percent in December, 2002, and up to three percent in January, and 3.3 percent in April and May.

The hike in inflation was attributed to a rise costs in many sectors including the transport and vehicles, food, rent and household goods, services and supplies.

The transport and vehicles sector saw the largest movement in prices, up 0.4 percent during the month of August and costs increased on average between 1.3 percent between July and August.

The cost of foreign air travel rose by 9.6 percent, with the statement from the Statistics Department saying: “This reflects the month of August as a peak period for holiday travel by households.”

The cost of cars and motorcycles rose by two percent and 1.1 percent respectively, while premium fuel prices rose by 1.1 percent and mixed fuel rose by one percent.

The food index rose by 0.2 percent with strong rises in the price of honey (up 8.9 percent), bread (up 6.3 percent) salt and pepper (up 2.2 percent), confectionery (up 1.7 percent) spaghetti sauce (up 4.9 percent) and green peppers (up 1.2 percent). These rises were offset by falls in the cost of rice (down three percent), cantaloupes (down 3.6 percent) and tea (down 2.7 percent).

The cost of rents rose by 0.3 percent with the average rents for non-controlled properties increasing by 0.4 percent and non controlled properties rose by 0.2 percent.

The cost of household goods, services and supplies also rose by 0.8 percent, with the cost of household appliances up by 2.4 percent, stereos up 5.1 percent and lawyers fees up four percent.

But many of the other sectors used to measure the CPI remained static. These included clothing and footwear, which remained level for the third consecutive month with relatively little movement in the sub-sector category. The price of tobacco and liquor also remained relatively the same. The cost of cigarettes fell by 0.4 percent, which was offset by a price increase in beers and spirits, up 0.1 percent.

The fuel and power sector was also static for the second month running with no change in the average cost of electricity and propane and heating fuels.

Education, recreation and reading sector also registered no price increases overall. Households paid less for toys, games and hobbies, which were down 0.5 percent while boat owners saw prices rise by 1.1 percent for the cost of pleasure boats and the cost of fuel.

The overall cost of health and personal care was also static, despite fractional increases in the cost of self-prescribed medicines, household medical supplies and toiletries the index at the sector level held steady for the third consecutive month.