Charity worker Martha Dismont believes Government needs to consider axing food tariffs as Islanders struggle with rising food prices.

The latest figures show inflation running at five percent with the food sector being the largest contributor to the hike with a 6.5 percent rise. Rents went up 2.7 percent while fuel and power shot up a whopping 25 percent year-on-year.

Ms Dismont, of the Family Centre, said Government ending import duties would help families struggling with soaring shopping bills.

Tariffs range from 22.25 percent for sugary treats to nothing for basic food stuffs.

Ms Dismont told The Royal Gazette: "It would definitely make a difference to the costs which are exorbitant because of the tariffs they are based on.

"Maybe that is one way that Government can pull back."

Ms Dismont said rising prices were having a huge impact on families and local business, but Government had been silent on a way forward.

She said: "Can Government confer with us to give us some idea of how they are addressing it? I just haven't seen anything."

In March the Premier's press secretary, Glenn Jones, said that the Council of Economic Advisors, which had been set up in October 2007, was committed to "creating innovative solutions across socio-economic classes".

Pressed on progress Premier Dr. Ewart Brown said last night that the Council would meet again in the next two weeks and "everything would be on the table".

He said: "That will be an opportune time to talk about the current economic climate around the world and how it affects the people of Bermuda.

"These will be some of the brightest economic minds around."

Dr. Brown said Government had already been focused on easing the financial burden on working families.

"We've eliminated the cost of public transportation for school students, we've eliminated the cost of tuition at Bermuda College, we've instituted geared to income housing and we're working on free day care – an initiative discussed in a Council of Economic Advisors meeting a year ago, I might add."

The Premier continued: "For seniors we've eliminated property tax on the primary homestead, we've eliminated the cost of annual vehicle registration, we've eliminated the cost of public transportation, we've increased prescription drug benefits and FutureCare is on the way to further alleviate financial burdens for seniors.

"I know more can be done and that's what we'll be talking about in the coming days, but I am certain the steps we have taken already are allowing a great many Bermudians to navigate the current economic downturn far more effectively than they would have otherwise."

Mrs. Dismont urged people to curb spending on non-essentials but Lindo's manager Zach Moniz said spending patterns on food had not changed, despite the price trend.

Mr. Moniz said: "People seem to be shopping normally which is odd."

And he said a duty cut on food would not be of much help.

"I think the duty is quite fair and the essential items are zero duty anyway. The problem is people haven't adjusted the way they are shopping. They are still buying chips and sodas.

"If there was a cut in duty then somewhere along the way some other tax would have to increase or Government expenditure would have to decrease."

Mr. Moniz said he believed the financial difficulties on Wall Street would eventually take the steam out of inflation.

"I guess oil prices will decrease and hopefully shipping costs will decrease and those prices will eventually get passed on to consumers.

"I know this company has large energy costs which have gone through the roof but our raw energy costs are not reflected in our prices and our price structure has not changed for about 20 years."

Shadow Finance Minister Bob Richards said a cut in food tariffs would have a one-time effect on inflation and tariffs had already been greatly reduced during the UBP's time in power.

He added: "We have to look at the overall situation. A lot of the causes of the inflation rate are to do with fuel and power."

Mr. Richards said falling world fuel prices should soon work their way through to Belco bills but the core rate of inflation, aside from food and fuel, was still high and partly to be blamed on excessive Government spending.

He predicted a softening in the rental market, which he said was being caused by departing expats, would also help take the sting out of inflation.

"We should not focus too much on the inflation rate, it's looking backwards. We should be looking forward."

He said an economic downturn was the key worry. "It will be difficult for business, there will be fewer jobs."