The Island's annual rate of inflation in February was 0.2 percent lower than the 4.1 percent high measured in January this year. Consumers saw little month-over-month price movement in the broad sectors in February, however, they paid 3.9 percent more for goods and services in February 2005 than they did in February 2004 due to strong year-over-year increases in almost all sectors.

Compared with January 2005, the rate of price increase advanced one percent in February. The all items index rose from 130.2 index points in January 2005 to 130.3 index points in February.

The strongest price movements for the month of February were posted in the food and rent sectors. Both increased 0.2 percent with flour, stewing beef, sausages and wieners, milk, ice cream, apples and cabbage the main items behind the increase in the food sector.

The average rent for controlled properties advanced 0.4 percent and the average rental cost for non-controlled properties increased 0.3 percent for the month.

Higher health care and insurance premiums saw the health and personal care sector post the strongest year-on-year growth at 10.1 percent over February 2004. However that sector displayed no price movement month-over-month.

A 0.2 percent increase in the price of self-prescribed medicines and household medical supplies was offset by a 0.1 percent decrease in toiletries, cosmetics and perfumes.

The clothing and footwear sector and tobacco and liquor sector saw no price movement for the month, but the tobacco and liquor sector advanced 6.2 percent year-over-year due to the current level of duty charges imposed.

The fuel and power sector was relatively static in February with the Fuel Adjustment clause (FAC) remaining at a high 5.3 cents per kilowatt hour.

Household goods, services and supplies showed no movement at the sector level, however the Department of Statistics reports that at the sub-sector level prices for household appliances increased 0.4 percent while prices for household entertainment equipment increased 3.2 percent.

Prices for the transport and vehicle sector fell by 0.1 percent during the month of February.

This was a direct result of a 1.2 percent decline in the cost of new cars, however, when compared with February 2004, the sector advanced 5.4 percent due mainly to rising world oil prices which impacted the price of gas and airline travel during the past year.

The education, recreation and reading sector did not show any month-over month price movement, but it did experience an increase of 5.3 percent year-on-year.

Increases in local and overseas tuition fees were the main factors contributing to the rise.