The global economic crisis made for gloomy headlines throughout October as the downturn began to bite locally – but business and political leaders urged people to stay positive.

A Research.bm poll showed 20 percent of people rated the economy/unemployment as the biggest issue facing the Island, second only to crime.

It prompted reassuring words from Cheryl Packwood, CEO of the Bermuda International Business Association, who said: "We are a major global financial player and so these broader issues resonate.

That said, Bermudians should know that we have just completed two major events in New York and Chicago where we met with many of the large players in the financial industry.

We were told repeatedly that Bermuda is in terrific shape and that we have an important and incredibly valuable opportunity to be a part of the solution to this global financial crisis."

Finance Minister Paula Cox similarly acknowledged that Bermuda is not immune from the global turmoil, but said the Island's international business sector could emerge well.

She told The Royal Gazette that Bermuda was not hampered by many of the factors that had ravaged the US economy.

New figures showed 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 25 percent year-on-year.

The news prompted Martha Dismont of The Family Centre charity to ask Government to axe import duties on food to help families with soaring shopping bills.

Housing Minister David Burch said a financial freeze placed on Government meant some major initiatives to provide affordable homes had been placed on the back burner.

Days later, Minister Cox revealed the extent of belt-tightening directions given to all Government Ministries, telling this newspaper: "As a guide, each Minister has been encouraged to identify savings of 10.5 percent within their existing cash limits."

Meanwhile, fresh statistics showed that shoppers had been buying less in local stores and spending more overseas.

The Retail Sales Index for August demonstrated that the volume of retail sales fell by 2.6 percent while spending by residents abroad increased by 13.5 percent from the same month last year to $8.4 million.

Kristi Grayston, chairman of the retail division of Bermuda Chamber of Commerce, described the retail community as "extremely worried" about the months to come.