The rate of inflation for July continued to drop, falling marginally to 3.1 percent due in part to a reduction in the cost of foreign travel, according to Government figures released yesterday.

The consumer price index, which is used as the measurement for inflation, was down for the second month running after hitting a peak in April and May of 3.3 percent.

The general decline was attributed in part to the fall off in transport and vehicles sector, which Government said posted the strongest price movement during the month, dropping by 0.8 percent between June and July.

"The downward pressure in the Transport and Vehicles sector was attributed primarily to a seasonal decline of 2.2 percent in the cost of foreign travel," said the CPI, which is released by the Statistics Department.

It added that this was softened by a rise in the cost of motor bikes, up 1.8 percent and a rise in the price of car repair and maintenance which went up by 1.3 percent.

But the cost of public transport - bus, ferry and taxi fares - remained "relatively stagnant", added the release.

The food sector showed no movement overall, but saw rises and falls across ranges of food. The price of baby food rose 3.1 percent, canned fruits down 0.6 percent, yoghurt down 0.3 percent, sliced cheese down 0.9 percent, butter down 0.8 percent, coffee down 1.1 percent, and table salt 3.8 percent. And there were also marginal fluctuations in the price of fruit and vegetables, the release added.

Rents across the Island rose by 0.2 percent, with rent controlled property up 0.2 percent and non-controlled property at 0.1 percent.

There was no movement in the clothing and footwear for the second consecutive month.

The price of tobacco and liquor fell by 0.1 percent. The average price of spirits fell by 0.3 percent, but this was balanced out by a modest gain in the average price of wine and beer, both up 0.1 percent. The cost tobacco remained unchanged.

The fuel and power sector also remained static during July. There was no change in the price of electricity or in the price of propane and heating fuels.

The overall cost of household goods, service and supplies was also constant in July, but the average price of funeral services has risen by 7.8 percent.

In the education, recreation and reading sector rose by 0.1 percent, which included a 0.7 percent increase in the cost of recreational services.

The average price for health and personal care also remained constant with no price changes in the majority of the sectors. The cost of self prescribed medicines and household medical supplies fell by 0.1 percent and consumers paid less for personal care and toiletries, which fell by 0.1 percent.