Inflation rate plunges to 3.1 percent
A steady rise in the cost of goods and services over the last year slowed in April as Bermuda's inflation rate fell to 3.1 percent, Government figures show.
During the past year inflation has tracked between a low of 3.2 percent (April, 2004) and high of 4.1 percent (March 2005).
The 3.1 percent rate of inflation for April ? the lowest inflation level in more than a year ? was revealed yesterday in Consumer Price Index (CPI) figures from Government.
The CPI bulletin said inflation rate had abated in April ? with consumers paying out 3.1 percent more in April than they did a year prior for goods and services ? as health and medical care costs moderated to offset rising energy costs.
The inflation rate was a marked improvement over the prior three months with the first quarter's average rate of inflation standing at four percent, according to the bulletin.
Although April's rise in prices was more moderate than in previous months, consumers continued to experience increases for most goods and services. This was particularly true for fuel-related purchases with propane gas and heating fuel costs rising five percent during the period while cylinders of propane gas reached an all-time high of $118.10 per cylinder, a development attributed to rising wholesale prices.
Consumers also paid out more at the till when gassing up vehicles with premium gas costing 2.7 percent more while mixed gas rose 2.6 percent.
There was also a 2.7 percent increase in the cost of boat fuel. In addition, it cost more to travel abroad with airfares rising 1.2 percent in April.
Grocery bills were also moderately higher with food prices rising 0.2 percent in April while housing costs also went up as rents rose an average of 0.3 percent.
The cost of tobacco and liquor remained unchanged.
Clothing and footwear costs were also higher, although a 0.3 percent increase for this sector was largely pinned on a 3.5 percent surge in what consumers paid at the dry cleaners.
Household goods, services and supplies were up 0.2 percent in the month ? an increase attributed to the average price of floor coverings going up by 2.5 percent.
The only sector to record a decline in prices was the Health and Personal Care segment which posted a 0.8 percent fall in costs primarily because of moderating health insurance costs.
Compared to neighbouring nations Bermuda's rate of inflation in April was lower than both in the US (3.5 percent) and in the UK (3.2 percent) but significantly higher than in Canada where inflation was recorded as 2.4 percent.