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Inflation shows no sign of falling

Bermuda's rate of inflation for March maintained the high reached in January with shoppers paying out a whopping 4.1 percent more than a year ago for goods bought locally.

Government figures released yesterday show that March's rate of inflation was 0.2 percent higher than the 3.9 percent measured by the Consumer Price Index in February, but constant with the 4.1 percent level reached in January.

In 2004, the rate of inflation averaged 3.5 percent despite Government predictions it would fall at or below the three percent range.

While three months does not necessarily spell a trend for the year, the rate of inflation does not appear to be showing signs of stabilisation.

The reason for the strong price movement in March is based on the continued rise in the price of gasoline ? something that many countries, not just Bermuda, is grappling with.

In total, consumers saw a steep rise in prices at the pump with premium gas costing 5.1 percent more and mixed gas being 4.9 percent more costly.

Airfares were also dearer, possibly for the same reason, with the price of an overseas ticket rising by 0.4 percent. Overseas hotel accommodations also cost travelling locals more with those rates rising 0.5 percent.

In total, the Transport and Vehicles Sector of the Bermuda Price Index rose one percent in March.

Other sectors saw increases below that level although there were some steep rises for certain items.

One of these was magazines with consumers paying out an average of 7.6 percent more for periodicals, while those wanting to get their boats back in the water will have found the cost of marine repairs and maintenance 6.8 percent higher.

But a trip to the grocery store was only modestly more expensive to make, with foodstuffs costing an average of 0.2 percent more.

Consumers saw no change to the price they paid for tobacco products, liquor or for household items and services.

There was a similar increase in rents, while kitting oneself out in new cool weather gear would have set back consumers 0.7 percent in March. This would have been particularly true for men with shirts seeing the largest hike for this sector, advancing 2.5 percent. Men's accessories also cost two percent more and men's shoes increased 1.7 percent at the till.

The average price of women's slacks was 0.4 percent higher and children's shoes cost 0.9 percent more.

While the price of petrol shot up again during March, other fuel sources were actually cheaper. In particular there was a 2.2 percent decline in the average price of propane gas and heating fuel.