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Inflation rate hits 2.3% as health sector costs rise

Inflation rose to its highest level so far this year hitting 2.3 percent during march, according to the latest figures released by Government.

The Department of Statistics' Consumer Price Index report revealed that the inflation rate jumped from 1.3 percent in February, while the average cost of goods and services was up 0.7 percent between the two months.

The health and personal care sector, which includes the cost of doctor's visits, health insurance, prescribed and self-prescribed drugs and toileteries, continued to be the biggest contributor to the one-year increase as it climbed 7.1 percent.

The food and household goods, services and communications sectors, such as appliances, furniture and electronics, also impacted strongly on the annual rate of inflation, with price shifts averaging 3.4 percent for food and 2.7 percent for household goods, services and communications.

On a monthly basis, the transport and vehicles sector advanced 3.4 percent over March, driven by airfares and overseas hotel accommodation prices, which rose 5.3 percent and 11.8 percent respectively.

The average cost of new motor vehicles also edged up by one percent while gasoline prices increased 1.5 percent.

Consumers saw food prices climb by 1.2 percent in March, with lettuce up 11.1 percent, pork loins 7.1 percent and oranges 6.3 percent.

The rent sector rose 1.2 percent, attributed to the 0.4 percent increase in rent-controlled properties. Rental units not subject to rent control remained unchanged for the month.

The education, recreation and reading sector grew by 0.1 percent for the month, caused by a 1.2 percent rise in the price of magazines and a 1.2 percent increase in boat repairs and maintenance costs.

Elsewhere the household goods, services and communications sector, the fuel and power sector and the clothing and footwear sectors remained unchanged during March, while the health and personal care sector was static for the month, as the 0.3 percent increase in the average cost of prescribed drugs was offset by a 0.2 percent decrease in prescribed drugs.

Smokers and drinkers, however, enjoyed some relief as the tobacco and liquor sector declined 0.1 percent for the month, reflecting a decline in the average price of spirits by 0.4 percent and cigarettes by 0.2 percent.