Inflation is steadily edging up in Bermuda, with households on the Island paying on average some 2.6 per cent more for goods and services than they did a year ago.

The higher-than-normal rate of inflation was revealed in the latest figures published by the Ministry of Finance Statistics Department yesterday.

In just one month, the figures have gone up 0.5 percent and the all-items index shifted from 110.5 index points in June to 111.0 in July.

The figures, which are based on the consumer price index `basket of goods and services' in July, have increased mainly due to the rise in the price of fuel and the cost of power.

Households paid more for electricity, which was up 1.1 percent on last year.

A cylinder of propane gas increased by 2.3 percent.

The higher cost of car repair and maintenance soared by 2.9 percent. Cycle fuel increased 1.4 percent and air fares leapt 2.9 percent.

Household rentals also went up, by 0.8 percent, but according to the statistics department, the additional money paid for land tax had little impact so far on the overall figure.

The rise in the cost of housing was not one of the main factors in the shift in inflation.

But the cost of a telephone access line also increased from $21 to $26.

According to a spokesperson for the Government statistics department, the increase in home insurance in April also had a knock-on effect on the figures as well as higher global fuel prices.

The spokesperson told The Royal Gazette : "We were at an average of 2 percent in March, and in April it went up to 2.4 percent.

April is that time of year when there are many increases in price, including house insurance.

"In June we saw an increase in fuel, which was an increase independent of house insurance. Now in July we are continuing with that fuel adjustment.'' The household goods, services and supplies sector rose by 0.7 percent.

Clothing and footwear saw no change in prices, while food, health and personal care edged up 0.1 percent.

Tobacco and alcohol went up by 0.2 percent and the fields of education, recreation and reading saw the same percentage rise.

Shadow Finance Minister Grant Gibbons blamed the steady increase in inflation on global inflation and on high government spending.

Mr. Gibbons said: "In the three months ending in July, the UK has a rate of 2.7 percent, Canada 2.6 percent and the States 2.6 percent.

"And because we depend on imports, we are affected. The world price in fuel has risen, and so have prices here.

"Another thing that concerns me is that the Government budget for 1999-2000 was inflammatory.

"It was up 7.4 percent, almost four times the rate of inflation at the time which was 2 percent.'' Mr. Gibbons added that he wanted to see inflation reduced and said: "As the rate of inflation goes up, it will impact on people with fixed income, such as pensioners.

It will also impact on businesses who are trying to plan their budget, and wages will increase slightly above inflation which in turn could increase inflation.'' CHART Concern: Grant Gibbons, shadow finance minister, blames global inflation and Government spending.