Inflation edges up to 2.5%
The rate of inflation hit 2.5 percent during the month of May, driven by the rising cost of health care and increases in the rental and food prices.It was the second highest rate rise of the year on a par with March, up from 2.4 percent in April, but lower than the 3.2 percent recorded in February.Health and personal care, including the cost of doctor’s visits, health insurance, prescribed and self-prescribed drugs and toiletries, was up 8.1 percent on the previous year, while rent and food climbed 1.6 percent and 2.2 percent respectively.On a month-to-month basis, the rental sector advanced 0.3 percent due to the 3.6 percent increase in building material costs, however rental units not subject to rent control were unchanged for the month.On average, food prices edged up 0.4 percent in May, with codfish (8.1 percent), bread (five percent) and top round beef (five percent) the biggest contributors. The clothing and footwear sector also rose 2.2 percent on a 0.1 percent increase in dry cleaning costs.On the flip side, the transport and vehicle sector fell 3.6 percent for the month, with the decline attributed to a 14.8 percent reduction in the prices of airfares and an 11.7 percent drop in the cost of overseas hotel accommodations. In contrast there was a 2.6 percent increase in the capital cost of cars.The education, recreation and reading sector also declined 0.1 percent in May as a result of a two percent and 0.7 percent decrease in capital costs of boats and televisions respectively.The household goods, services and communications sector, tobacco and liquor sector, fuel and power sector, and health and personal care sectors all remained unchanged.