BERMUDA'S prices have risen by nearly four percent in the last year.

Figures released by the Department of Statistics yesterday measured the rate of inflation for July at 3.7 percent ? an increase of 0.6 percent when compared with the same period a year ago.

In June 2004, the rate of inflation measured 3.5 percent.

According to Government statisticians, an increase experienced the following month was caused largely by a rise in the cost of car repair and maintenance.

"During the month, households experienced a 0.2 percent increase in the average cost of goods and services in the Consumer Price Index 'shopping basket'," a Department spokesman explained.

"The all-items index rose from 127.7 index points in June to 127.9 in July. Amongst the main sectors that comprise the index, Transport & Vehicles posted the strongest price movement, rising by 0.6 percent during the month. An overall rise in the price of car repair and maintenance was the main factor contributing to this upward swing. The average price of repairs rose by 7.5 percent due to an increase in labour charges."

The rate of inflation is determined by the Consumer Price Index, a statistical tool used to measure movement in the price of goods and services purchased by households.

"The index measures price movements of a given quality and quantity of goods and services," the spokesperson explained. "The mix of these consumer goods and services comprising the Index, are figuratively thought of as a 'shopping basket'."