since July of last year, according to figures released by Government yesterday.

The rate of inflation was below the 2.9 percent recorded in May.

During the month, the average cost of goods and services edged up 0.1 percent.

The fuel and power sector was the index's most volatile, falling by 5.6 percent during the month.

Government said the decline in the sector was largely due to the fuel adjustment clause, which dropped 34.3 percent due to lower market prices for fuel and pushed down the average cost of electricity.

Food prices rose 1.5 percent during the month, primarily because of a 3.4 percent increase in the cost of dining out. Tobacco and liquor gained 0.9 percent, with the average price paid for a carton of cigarettes 3.2 percent above May's figure. Household goods, services and supplies edged up 0.2 percent as elderly care residential fees posted a 2.7 percent increase.

Inflation in the transport and vehicles sector was up by a modest 0.2 percent, with the capital cost of new cars falling 0.4 percent and the price of gasoline up 0.6 percent. Airline tickets cost more during the month, but hotel accommodations posted a 2 percent decrease.

Rent, clothing and footwear and health and personal care posted little or no movement during June.

BUSINESS BUC