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Inflation dipped in June

Inflation driver: The health and personal care sector saw the largest increase in prices in June

The annual rate of inflation in Bermuda abated slightly during the month of June.According to the latest figures in the Consumer Price Index (CPI), released by Government on Friday, consumers paid 2.7 percent more in June 2012 than they did a year earlier for goods and services. That’s slightly lower than where the rate stood in May — at 2.9 percent.On average, the report says, the cost of good and services in the CPI remained the same, but that a basket of goods that cost $100 in April of 2006, now costs $119.70.The health and personal care sector was the largest contributor to the year-over-year increase. The cost of health insurance, standard dental exams and prescribed and over-the-counter medications increased 8.9 percent, 4.1 percent and 3.9 percent respectively.The fuel and power and food sectors also impacted strongly on the annual rate of inflation, as price shifts in these sectors were 16.2 percent and 4.2 percent respectively. Residential electricity costs rose by 5.6 percent in response to an 11.4 percent jump in the fuel adjustment rate.In contrast, prices in the transport and vehicle sector were down 1.8 percent overall. On average, hotel accommodation rates and airfares dropped 7.3 and 2.6 percent, respectively.