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Oil prices fuel inflation

Rising oil prices are pushing Bermuda's inflation rate higher.According to the Consumer Price Index released by Government Information Services on Friday, the rate of inflation for June was 2.3 percent compared to 2.2 percent in May.Consumer prices advanced 0.3 percent during the month as the all-items index shifted from 119.2 points in May to 119.6 in June.

Rising oil prices are pushing Bermuda's inflation rate higher.

According to the Consumer Price Index released by Government Information Services on Friday, the rate of inflation for June was 2.3 percent compared to 2.2 percent in May.

Consumer prices advanced 0.3 percent during the month as the all-items index shifted from 119.2 points in May to 119.6 in June.

Within the main sectors of the index, fuel and power showed the strongest price movement for the second consecutive month with a 2.2 percent rise in June.

The Fuel Adjustment Clause (FAC) continued its upward trend, surging 18.3 percent during the month.

This was due primarily to the higher trading price of a barrel of oil on the world market which resulted in households experiencing a 2.0 percent increase in the average cost of electricity.

Additionally, the cost of a cylinder of propane gas increased 3.7 percent above the previous month's rate.

The food and beverage index edged up 0.5 percent in June with the average cost of grocery store items rising 0.1 percent.

Selected items showing strong price increases include a 5.9 percent rise in the price of carrots and grapes, and a 3.9 percent increase in the price of a leg of lamb.

Additionally, during June the cost of eating out at restaurants and cafes rose a seasonal 1.2 percent.

The average cost of rent increased 0.1 percent during the month with average rents for controlled properties rising 0.1 percent while noncontrolled properties increased by 0.1 percent.

Clothing and Footwear prices increased 0.2 percent due primarily to a 2.1 percent rise in the average cost of dry-cleaning.

Tobacco and liquor dropped marginally by 0.1 percent during the month of June after a fractional drop - 0.1 percent - in the average price of a case of beer.

The price movement for the household goods, services and supplies sector was 0.6 percent with the average cost of elderly care rising 8.4 percent during the month of June.

In addition, there was a fractional rise of 0.1 percent in household supply products such as cleaning materials and insecticides.

The transport and vehicle sector rose 0.1 percent in June with the cost of premium and mixed fuels increasing 0.2 percent above the previous month.

The average cost of airfares climbed a moderate 0.4 percent.

The education, recreation and reading sector remained unchanged although there were minor price movements with the subsector. This included the cost of boat fuel, increasing 0.2 percent, and pet cost and upkeep, increasing 0.1 percent.

The health and personal care sector rose 0.6 percent during the month of June which can be attributed in part to a 2.5 percent rise in the cost of prescribed medicines.

In addition, there was a 3.6 percent upward movement in the average cost of ladies hairstyling. There was also a 4.5 percent increase in personal care services such as facials, manicures and half hour body massages.