released yesterday by the Ministry of Finance. The new Bermuda Consumer Price Index figure -- the highest in recent years -- is for August 1999. It rose only slightly from 2.6 per cent reported for the previous month.

Average consumer prices went up 0.1 per cent during the month, leaving the all-items index at 111.1 points for August. Food, particularly fruits, vegetables and meats, showed the largest price hike of all the sectors, at 0.4 per cent. Tobacco and liquor prices fell by 0.5 per cent.

The push in inflation is also due in part to the rising cost of health and medical products, plus a steady rise in rents which are basic to the economy.

The average cost of over-the-counter medicines increased by 0.8 per cent, and both controlled and decontrolled properties showed a 0.1 per cent rise in rent costs.

The statistics also show some of the delayed impact from a previous rise in oil prices rolling through the economy. The price of premium and mixed gasoline rose by 1.5 and 1.4 per cent, respectively. "Bermuda to a certain degree imports inflation because it imports goods,'' a Government source said.

He added inflation was expected to moderate in the coming months.

BUSINESS BUC