Inflation drops to 2.5%
Inflation hit 2.5 percent in March 2011, driven by the rising cost of healthcare, according to the latest figures released by Government.The rate of inflation which dropped from the 3.2 percent rate measured in February compares to a 2.3 percent increase for the same period in March 2010.The health and personal care sector, which includes the cost of doctors’ visits, health insurance, prescribed and self-prescribed drugs and toiletries, continued to be the biggest contributor to the 12-month increase in the Consumer Price Index.Year-on-year, the sector rose 7.6 percent and on a monthly basis it was up 0.1 percent as the average cost of prescription drugs climbed 1.3 percent.The rent and fuel and power sectors also pushed the annual inflation rate higher as they climbed 1.7 percent and 8.1 percent respectively.Month-to-month, tenants ended up paying more as the rent sector rose 0.2 percent, mainly due to a 0.3 percent increase in rent-controlled properties.Smokers and drinkers paid more for their favourite brands as the tobacco and liquor sector advanced 0.2 percent for the month of March in response to a 1.2 percent rise in the average price of beer.The education, recreation and reading sector also grew by 0.1 percent for the month as a result of a 6.7 percent increase in the cost of boat fuel and a 1.2 percent rise in the price of sports equipment.But motorists had some relief with the transport and vehicles sector dropping 1.3 percent on reduced airfares and lower overseas hotel accommodation rates which fell 12.9 percent and 3.1 percent respectively. In contrast gasoline prices jumped 6.7 percent.The household goods, services and communications sector also declined 0.1 percent as the rate of price increase for household supply products, such as cleaning materials, food wraps, trash bags and detergents fell by 0.2 percent.All of the other sectors remained unchanged.