Bermuda's inflation rate hit one percent as the cost of health and personal care rose during December 2009, according to the latest figures released by Government.

The Department of Statistics' Consumer Price Index report revealed that the cost of goods and services decreased by 0.3 percent between November and December 2009, but increased year on year.

The health and personal care sector was the biggest driver behind the 12-month increase — up 7.2 percent — the largest contributor to the rise for the fourth quarter.

The household goods, services and communications sector and the rent sector also impacted strongly on the annual rate of inflation, with measured increases of 3.2 percent and 1.1 percent respectively.

On a month-to-month basis, the rate of price increase for goods and services in the household goods, services and communications sector was 0.3 percent, triggered by a rise in the price of air parcel postage.

The rent sector edged up 0.1 percent between November and December, due to a marginal increase in the average price of controlled and non-controlled rental properties.

The health and personal care sector declined 0.1 percent for the month, with an increase in the cost of prescribed drugs being offset by falls in the price of manicures and body massages.

The tobacco and liquor sector climbed 1.1 percent in December as the price of beer rose 4.5 percent over the month.

Meanwhile, the transport and vehicles sector dropped 2.2 percent in December compared to November, reflecting a 6.6 percent decrease in hotel accommodations and a 2.9 percent decline in air travel. The capital cost of cars dropped 0.7 percent and fuel prices fell by 1.6 percent.

The education, recreation and reading sector declined 0.1 percent for the month as a result of a decrease in the price of boat fuel and sporting equipment, with, on average food prices decreased 0.7 percent over the same period, with lettuce and frozen peas down by 3.1 percent and three percent respectively.

The fuel and power and clothing and footwear sectors were unchanged for the month of December.