Bermuda’s inflation rate turned negative for the first time in 55 years in July.

The annual rate was -1.4 per cent, which means consumers paid 1.4 per cent less for a basket of goods and services included in the Consumer Price Index in July than they did a year ago.

The rent sector contracted 3.3 per cent, and this impacted strongly on the inflation rate. Properties not subject to rent control suffered a 7.6 per cent price contraction year-over-year.

The transport and foreign travel, and fuel and power sectors also impacted strongly on the annual rate of inflation, as price declines in these sectors were 8.7 per cent and 5.8 per cent, respectively.

Wayne Furbert, Minister for the Cabinet Office, said: “Between June 2020 and July 2020 the average cost of all goods and services decreased 0.5 percentage points.

“Some price data used to produce the CPI index was not collected in July 2020 due to some unavailable goods and services and non-response from open stores. As a result of the coronavirus, in-person field collection was suspended and, where possible, prices were collected via alternative methods such as online and e-mail.”

Two of the nine sectors had missing prices which were imputed, they were food and transport and foreign travel.

Between June and July the rent sector was down 0.4 per cent as the average cost of properties not subject to rent control decreased 1.1 per cent in July. The transport and foreign travel sector slipped 1.9 per cent. The average price of automobiles and premium gasoline fell 4.3 per cent and 4.2 per cent, respectively. The fuel and power sector declined 3.4 per cent in response to a drop in the fuel adjustment clause (-10.3 per cent) in July.

Month to month, the food sector edged up 0.1 per cent, with the cost of cantaloupes rising 5 per cent, frozen broccoli up 4.7 per cent, and lettuce rising 2.6 per cent.

The clothing and footwear sector was unchanged. The average cost of jewellery increased 2.8 per cent, while the average cost of men’s shirts fell 4.1 per cent.

The household goods, services and supplies sector rose 0.1 per cent, with the average cost of detergents and bleaches rising 5.7 per cent. The tobacco and liquor sector fell 0.2 per cent, with the average cost of beer down 1.2 per cent.

Download PDF File

Consumer Price Index

There was no change to the health and personal care sector, or the education, recreation, entertainment and reading sector.