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Inflation rate rises to 1.8%

Bermuda's inflation rate rose to 1.8 per cent in December, with an increase in gasoline prices at the pumps and the cost of wine among the factors impacting the cost of living.

The inflation rate was up 0.4 per cent on the previous month.

Although gas pump prices rose by 1.6 per cent, the continuing fall in crude oil prices globally was beneficial for householders, who saw the fuel adjustment rate for the month fall 6.3 per cent.

The price of oil has collapsed during the past year, and fell below $30 a barrel during January, the lowest since the early 2000s.

Overall, the fuel and power sector declined by 2 per cent in December.

The average cost of wine was up 1.4 per cent, while the tobacco and liquor sector increased by 0.3 per cent.

The all-items index, which is based on a basket of goods and services that cost $100 in April, remained unchanged at 100.5 between November and December. The same basket of goods and services would have cost $100.50 in December.

Rents increased by 0.1 per cent, however the food sector recorded a decline of 0.2 per cent, which continued from a 0.5 per cent drop in November. Leading factors in December's decrease was a drop in the average price for roasting chickens, which was 5.8 per cent lower, pork loins rolls down 4 per cent, and lamb chops down 3.8 per cent.

Looking at longer trends, the health and personal care sector rose by 7 per cent year-to-year, impacted by higher insurance premiums and the cost of prescribed medicines.

Household goods, services and supplies increased as a sector by 2.9 per cent for the year compared with 2014, while the food sector was up 2.2 per cent.

Bermuda's inflation rate for the whole of 2015 was 1.5 per cent, down from 2 per cent in 2014.

By way of comparison, for 2015 the inflation rate in Britain and Canada was 1.1 per cent, while in the United States it was 0.7 per cent.

The consumer price index figures were compiled by the Department of Statistics.

More to pay: gas pump prices rose by 1.6 per cent in December. Bermuda's inflation rate increased to 1.8 per cent

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Published February 16, 2016 at 1:53 pm (Updated February 16, 2016 at 1:53 pm)

Inflation rate rises to 1.8%

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