The annual rate of inflation climbed sharply to 3.4 percent in September, driven by the higher cost of travelling overseas.

That is the highest inflation rate recorded since the February 2009 figure of 4.4 percent and a significant jump from August’s two percent rate.

The Department of Statistics’ Consumer Price Index showed that the average cost to travel overseas during the month of September increased 16.6 percent, as residents paid more for hotel accommodation and airfares.

Health and personal care sector costs were 8.7 percent higher than a year before, while the cost of food rose three percent year on year.

For the full story read tomorrow's Business Section of The Royal Gazette.