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Inflation declines to 1.6%

Economic indicator: Inflation in Bermuda fell to 1.6 per cent in June, as measured by the Consumer Price Index. The annual per cent change has fluctuated between 1.4 per cent and 2.3 per cent during the past year (Graph by Scott Neil/Data: Department of Statistics)

Inflation edged down 0.1 of a percentage point to 1.6 per cent in June.

The all-items index was 105, which means a basket of goods that cost $100 in April 2015 now costs $105.

According to the Consumer Price Index report for June, released by the Department of Statistics, the fuel and power sector was up 1.4 per cent, partly as a result of a 4.3 per cent increase in the fuel adjustment clause.

The cost of beer went up 2.4 per cent, contributing to a 0.98 per cent increase in the tobacco and liquor sector.

Meanwhile, the average cost of dining out went up 1.8 per cent as the food sector overall edged higher by 0.2 per cent.

The transport and foreign travel sector saw costs fall by 1.8 per cent, with decreases reported in the average cost of overseas hotels and air fare, down 7.6 per cent and 4.9 per cent, respectively.

There was a 0.1 per cent decline in the education, recreation, entertainment and reading sector, while all other sectors were unchanged for the month.

Year-on-year, the health and personal care sector saw costs increased 4.1 per cent.

For comparison, inflation in June was 2.9 per cent in the US, 2.5 per cent in Canada, and 3.4 per cent in the UK.

Click on Related Media for Consumer Price Index bulletin