inflation rate up to 2.6 percent.

The rate -- an increase of 0.2 percent -- covers the 12 months to January, and is the highest for some time.

Last night Finance Minister the Hon. David Saul said there was no cause for undue concern.

He expected the rate would edge down, and hover around 2.4 or 2.5 percent.

"It is important to look at the underlying reasons for the rise,'' he said.

The all-items index rose to 147.9 -- the highest for more than 10 years.

The food sector went up by 0.8 percent, with the prices of certain produce, such as celery and cucumbers, increasing by over five percent.

"The rise in the price of these products was partly due to agricultural losses caused by recent floodings across the United States,'' said a Government statement.

Fuel and power increased by 2.9 percent following a 2.75 percent hike in electricity tariff rates and a 9.1 percent rise in the fuel adjustment clause, the statement added.

Rent also went up, while the tobacco and liquor sectors crept up by 0.1 percent.

The statement pointed out the consumer price index would be calculated a different way from now on.

Instead of basing figures on the 1982 Consumer Expenditure Survey, the 1993 Household Expenditure Survey would be used.

"The primary purpose of these periodic revisions to the structure of the consumer price index is to allow for the fact that household expenditure patterns do change over time, and hence the basket of goods and services underlying the CPI must also be updated periodically to reflect these changes.'' ARTISTS ON SHOW ART Artists on show Some of Bermuda's most talented artists will come together on Friday evening to show residents that they do no have to look very far for entertainment.

The event, organised by Masterworks Foundation, will be held at the Number One Shed on Front Street from 5.30 to 8.30 p.m. on Friday.

Dubbed Jazzi-ology, it will feature well-known local musicians, including saxophonist Shine Hayward, Kenneth `Tokey' Dill, and the Dennis Fox trio.

Works by local artists, including Sharon Wilson, Chesley Trott, Stacey Jean Wainwright, and Betsy Mulderig will also be featured.

There will also be glass blowing and candle making demonstrations.

"This will be a family night for young and old, music lovers and art lovers,'' organisers said.

Tickets for the event will be $5 and on sale at the Number One Shed.