compared to the 1997 rate.

While eight out of sectors tracked by the Statistics Department in the consumer price index rose, a drop of 4.8 in average prices in the fuel and power classification helped keep the inflation rate the same as 1997. The classification tracks price changes for electricity and gas use.

Meanwhile prices in the health and personal care rose an average 5.3 percent over 1997, the large gain in the nine sectors of the index. Health and personal care makes up 8.1 percent of the weighting of the index. Inflation in the food sector was tracked at 2.6 percent, the next highest gain. Food makes up 15.2 percent of the basket of items tracked by the Statistics Department.

Clothing and footware prices rose an average of 2.2 percent during the year, while rents increased by two percent. Rent makes up 27.6 of the Consumer Price Index, the largest weighted sector used in calculating the overall effects of yearly price changes. Prices in the transport, recreation and reading sector rose 1.2 percent while those in the transport and vehicles rose an average of 1.5 percent. Transport and vehicles make up 13.5 percent of the index.

Island's Inflation rate holds steady The household goods, services and supplies sector recorded an average 0.8 percent price rise. The sector makes up 17.5 percent of the index's weighting.

Prices in the tobacco and liquor sector rose an average of 0.1 percent during the year.

The Statistics Department noted that prices in the transport and vehicle sector declined 0.4 percent in December compared to November, The decline was due mainly to a 2.4 percent drop in the price of gasoline and a 0.1 percent drop in the capital cost of cars. In the education, recreation and reading sector, prices fell 0.1 percent compared to November, mainly due to the 2.5 percent drop in boat fuel and a 1.3 percent fall in recreational equipment.

In the health care and personal care sector the average cost of prescribed medicines rose 2.8 percent over November prices.

Ups and downs: The annual rate of inflation tracked on a monthly basis has shown a decline from a high of 2.7 percent year over year in 1996 to the current 1.9 percent.

BUSINESS BUC