The rate of inflation has leapt to 3.8 percent for September and is now at levels not seen since August 1991 after a huge hike in the cost of education pushed the cost of living up.

In August inflation reached 3.4 percent, and has above 3 percent since April this year - well above levels in the US, the UK, Europe and Canada.

The Statistics Department, which released the figures on Friday as part of the Consumer Price Index, said that the last time inflation was this high was in August 1991, when it stood at 4.3 percent.

Rises in the cost of education, recreation and reading pushed up the cost of living in Bermuda with the cost of local private school fees up by 11.8 percent, which was attributed to in part higher operational expenses.

Fees at overseas colleges and universities also jumped by 7.3 percent and the cost of recreational lessons such as piano and computer, also rose by 3.7 percent.

The average cost of boat repairs also took a huge price increase, rising 10.9 percent as a result of a rise in material expenses, according to the CPI.

Other sectors, however remained fairly static. The cost of food rose by just 0.1 percent with price fluctuations in crackers, up 5.9 percent, pork loin, up 3.1 percent, cucumbers up 5 percent, celery, up 3.2 percent, pears up 1.2 percent, peanut butter up 1.9 percent, rice up 1.6 percent and baby food up 1.3 percent.

Decreases in price were seen in strip loin, down 4.2 percent, leg of lamb, down 3.4 percent and canned fruits, down 0.5 percent.

Rent went up 0.3 percent for the second consecutive month with the average cost of controlled and non-controlled properties up by 0.3 and 0.1 respectively. The cost of repair work also increased by 2.7 percent.

Clothing and footwear prices also rose marginally by 1.2 percent in September. Men's cloths rose 1.6 percent, footwear up 3.7 percent and infant clothing and accessories up a whopping 12 percent.

Household goods, services and supplies rose by 0.9 percent. The average cost of childcare rose by 4.9 percent and the cost of legal services and home contents insurance rose by 3.2 percent.

The cost of household supplies such as food wraps, trash bags, cleaning materials, detergents and bleaches rose by 0.8 percent.

The average cost of transport and vehicles jumped 0.5 percent from August to September 2003, with a seasonal increase of 2.6 percent in the average cost of airfares partially offset by a decrease in the cost of premium and mixed fuel, down 1.2 and 1.1 percent respectively.

In the health and personal care sector, prices rose 0.1 percent with the average cost of prescription drugs increasing 2.6 percent and the cost of toiletries, cosmetics and perfumes up by 0.2 percent

There was some good news, with the price of tobacco and liquor and the cost of fuel falling.

Tobacco and liquor actually went down by 0.1 percent during the month, mainly due to the cost of wines falling by 0.4 percent.

The cost of fuel and power slipped by 0.1 percent which was attributed to a 1.9 percent decrease in the cost of propane gas and heating fuels. There was no change in the cost of electricity.