Inflation hits 4.5 percent
Bermuda’s inflation has hit a 16-year high after rocketing to 4.5 percent, outstripping the US, UK and Canada.
The last time the Island had a monthly cost of living rate so high was July 1991.
Despite the sharp upward movement, measured at 1.4 percent from April to May, Government remains confident the Island’s domestic economy is not overheating and points to the rise of oil on the global market as the primary driver affecting Bermuda’s current inflation figure.
The higher cost of staying in hotels overseas is another factor biting into the pockets of Bermuda’s residents.
Electricity prices also rose 17 percent as a result of the price of bringing a barrel of oil to the Island rising from $68 in January to $84 in May. The outlook on the energy front is not good as the current cost of a barrel of oil for Bermuda is higher still at $96.
A Finance Ministry spokesman yesterday pointed out that Bermuda’s underlying 12-month inflation rate remains close to a desired three percent track, running at 3.3 percent in May.
