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Tuition fees partly to blame for inflation rise

Inflation is continuing to edge up in Bermuda with households on the Island paying 2.8 percent more on goods than they did last year.

The rise in the cost of living has been creeping up since March, when it was at 1.9 percent -- a rise of just under 1 percent in six months.

The higher-than-normal rate of inflation was revealed in the latest figures for September. Finance Minister Eugene Cox could not be reached for comment.

The figures have risen 0.1 percent each month since July and the all-items index shifted from 111.1 in August to 111.6 in September.

The numbers are based on the consumer price index, a set basket of foods and services on which the actual cost of living is based.

This month the rise was attributed to a combination of factors including the increase in the cost of private education, electricity, gas, children's clothes and in nursery schools.

In the main sectors of the index, education, recreation and reading reported the strongest increase of 3.3 percent. This rise reflected the new scales of tuition fees which came into effect in September for this academic year.

The school fees for private schools and overseas colleges and universities increased 5.9 percent and 4 percent respectively.

The fuel and power index went up 2.1 percent. The fuel adjustment clause reached a high for this year standing at 2.0248 cents per kilowatt-hour. The rise in the clause was blamed on higher world market prices for a base fuel used to run the generators at Belco. As a result, fuel prices went up 2 percent.

The cost of cylinder gas also went up by 2.1 percent from last year.

The price of clothing and footwear together rose 0.8 percent. According to the Ministry of Finance, this was due to new stock arriving for the autumn/ winter seasons.

Across the board infants clothing rose 3.7 percent, children's wear 3.3 percent and men and women's apparel was up 1.8 percent.

The sector of household goods, services and supplies advanced 0.6 percent during the month. Households experienced higher prices for child care services as nursery school fees increased 3.3 percent. In the remaining sectors -- rent, transport and vehicles, tobacco and liquor -- all rose 0.1 percent while health and personal care showed no price movement from the previous month.

The annual percentage change for the same month last year was 2 percent.

Chart Eugene Cox