Bermuda residents saw the cost of living jump again in August with inflation rising to a high for the year of 3.8 percent.

The steep increase was revealed yesterday in Government's Consumer Price Index which showed that the average cost of goods and services rose by 0.5 percent.

So far this year, the rate of inflation has consistently come in at or above three percent, with it hitting 3.7 percent in July and edging even higher in August.

Year on year the rate of inflation for the month jumped to 3.8 percent compared to 3.4 percent a year ago.

Government ? which tracks inflation each month by measuring the price movements of a given quality and quantity of goods and services ? attributed the increase in large part to a surge in the average cost of overseas hotel accommodations, which rose by 7.1 percent. That increase came on top of residents saying they had spent out more the previous month when staying at hotels overseas, with an increase in those fees by 0.5 percent.

But consumers got somewhat of a break on the cost of running their vehicles, after having to stomach a spike in car repair and maintenance costs in July because of higher mechanic wages.

In August, vehicle owners saw the price of premium gas fall by 0.6 percent while mixed gas also cost less by 0.5 percent.

Consumers also faced slightly higher grocery bills in August as the cost of food items moved up 0.2 percent. Most expensive were meat and fish products with the average price of roast beef, strip loin steak, frozen lamb legs and fresh cod all costing more than two percent more at the cash register.

The price of renting a home also moved up 0.7 percent month-over-month with the bulk of the increase being seen in non-rent controlled properties which posted a 0.9 percent gain, while rent-controlled property landlords were generally asking 0.4 percent more in rent.

Meanwhile, the cost of household goods and fuel and power also shot up in August by 0.4 percent.

Within the household goods sub-sector, the average cost of major household appliances rose by 0.2 percent while television sets cost 0.6 percent more.

Also more expensive for residents was the cost of legal services and water truck deliveries, with both services costing 0.5 percent more during the month.

On top of that, Bermuda consumers were also charged 0.2 percent more for personal care supplies and services and 0.1 percent more for self-prescribed medicines and household medical supplies.

Pricing on clothing, footwear, education, recreation, reading materials, tobacco and liquor were constant month to month, according to the Index.

The Island's rate of inflation in August stood significantly higher than in the US, UK and Canada where inflation was measured at around three percent or lower. During the month, the US recorded an inflation rate of 2.7 percent, in the UK it was higher at 3.2 percent and Canada posted an inflation level of 1.9 percent.

Finance Minister Paula Cox predicted in February, when delivering the annual Budget statement, that inflation for 2004 would stand around three percent.

Ms Cox added that while inflation had averaged 3.2 percent during 2003, she expected it to stabilise during the current year.

"With a cautiously optimistic outlook for oil prices in 2004, consensus forecasts for consumer price inflation in G7 countries for 2004 is in the range of 1.5 to 2.6 percent. Barring any sharp increases in university and private education costs in 2004, Government anticipates that Bermuda's inflation rate should moderate in 2004 and track in a range centred around three percent."

So far for the year, the rate of inflation is averaging out at 3.35 percent.