The rate of inflation fell marginally in June 2003 to 3.2 percent pushed up mainly by an increase in the cost of food, according to figures released by Government yesterday.

The Consumer Price Index, which in Bermuda is used as a gauge of inflation, was down from the 3.3 percent recorded in May 2003.

The CPI, which is measured as a basket of goods and services, increased by 0.2 percent between May and June and the all items index, which measures any change, shifted from 123.1 percentage points to 123.4.

The cost of food rose highest during the month, rising 1.3 percent with the increase attributed to a seasonal increase of 2.4 percent of the cost of food bought from restaurants and cafes.

Households also experienced nominal price increases in the average cost of fresh milk, up 0.4 percent and bakery and cereal products, up 0.6 percent. Rent costs rose 0.1 percent in June, with non controlled properties rising 0.1 and controlled 0.2 percent. Clothing and footwear prices remained flat as did the cost of tobacco and liquor for the second month running.

However, the price of beer rose slightly, up 0.2 percent and sprits up 0.3 percent, but this was evened out by a slight reduction in the average price of a bottle of wine.

The cost of fuel and power rose 0.4 percent, due to a 4.8 percent increase in the Fuel Adjustment Clause. As a result the average cost of electricity rose by 0.8 percent.

The Household Goods, Services and Supplies sector also showed no overall price movement.

However in this sector the price of writing materials rose by 1.8 percent which was evened out by a fall in the cost of insecticides.

The average prices in the Transport and Vehicles sector fell by 0.1 percent for the second consecutive month.

This decrease was primarily due to a seasonal decline in the cost of air travel as ticket prices fell by 10.7 percent.

The overall cost of Education, Recreation and Reading sector also remained the same overall, with the price of recreational equipment rising by 0.5 percent and the cost of toys, games and hobbies up 2 percent.

This was offset by a 1.6 percent decline in the average price of books and magazines.

The Health and Personal Care sector rose by 0.3 percent after the average price of prescription medicines rose by 1.7 percent as well as a 1.8 percent increase in other personal services such as manicures and facial treatments.