The rate of inflation held steady at 2.4 per cent last September, according to figures released yesterday.

Price rises were fuelled once again by the food sector, with the cost of a bag of groceries increasing by 4.4 per cent from 12 months earlier.

Some food items, including breakfast cereals, sliced meats and frozen entrées, increased by more than ten percentage points. By contrast, there was a sharp drop in the price of spare ribs, onions and chicken.

The cost of education and healthcare also continued to rise.

School tuition on the island increased 5 per cent while overseas college tuition costs rose 2.2 per cent.

Although the annual increase in the health and personal care sector was only 2.2 per cent, the price of prescribed medicines rose 6.8 per cent

There were marginal increases in the property market, with the cost of rents rising 2.2 per cent compared with September 2022, and the value of homes increasing 2.7 per cent.

The transport and foreign travel sector also saw an increase of 2.2 per cent.

Although the average cost of overseas hotel accommodations dropped by 2.9 per cent, residents looking for a cheap holiday would have had to pay more — 7.6 per cent — for the price of an airline ticket.

While September’s figures were the same as August’s, they continued the general trend of a gradual slowing-down of inflation, which stood at 4.5 per cent at the start of 2023. It has fallen every month since, apart from July, a blip month that saw the rate increase by 0.1 per cent.

The latest figures were anticipated by the Ministry of Finance. A report on the island’s financial performance for the year, which was tabled in the House of Assembly on Friday, stated that inflation in Bermuda and globally was expected to continue to slow this year.

The report also noted: “The local economy is, however, vulnerable to several external risks which could hinder Bermuda’s expected growth in 2024.

“Despite the calming of global inflation, caution must be placed on the after-effects of tighter monetary policy.

Higher global interest rates have led to tighter financial market conditions, investment, consumption, unemployment, housing markets and economic activity.

“These factors can contribute to a global slowdown in demand, with spillover effects on the Bermuda economy.

“Bermuda has already seen a rise in interest rates, resulting in a tighter domestic financial market, an increase in the debt burden of households, and a decline in real consumption.”

The Government’s record on reining in inflation was highlighted by the Premier when he delivered his Budget Statement on Friday.

David Burt said it was one statistic that demonstrated that the Government was “taking our country's finances into a better, stronger direction”.

He acknowledged that many residents were not yet feeling the benefits of a slowdown in price rises.

Mr Burt said: “Yes, by nearly every measurement the economy is headed in the right direction, yet we know that too many Bermudians aren't feeling the impact in their lives. Too many continue to struggle with high food prices, while businesses boast about their profits.

“Too many face growing rental costs and shrinking housing options. From groceries to healthcare, to mortgage rates, the escalation of prices in Bermuda is causing an escalation of financial hardship and frustration.

“In this government we know that the best economic statistics in the world mean little when our people are not feeling it in their daily lives.

“We know that even if other islands around the world are experiencing similar challenges with the cost of living, and housing, it is little consolation to say that things are better here compared to other places.”