Health care costs push up inflation
The cost of healthcare was again the main contributor to inflation, statistics released this afternoon show.According to the Consumer Price Index, the rate of inflation in May was 2.5 percent compared to 2.4 percent recorded in April.The Health and Personal Care sector, which contains items such as the cost of doctor’s visits, health insurance, prescribed and self-prescribed drugs and toiletries, was the largest contributor to inflation, rising by 8.1 percent.The Rent and Food sectors also impacted strongly on the annual rate of inflation, as price shifts in these sectors were 1.6 percent and 2.2 percent, respectively.By sector:Food: On average, food prices edged up 0.4 percent in May. Among the main items contributing to the increase were codfish (8.1 percent), bread (5.0 percent) and top round beef (5.0 percent).Clothing and Footwear: A 2.2 percent increase in dry cleaning costs led to a 0.1 percent increase in the Clothing and Footwear sector in May.Household Goods, Services & Communications: The Household Goods, Services and Communications sector was unchanged for the month of May.Tobacco and Liquor: The Tobacco and Liquor sector was static for the month.Fuel and Power: The Fuel and Power sector recorded no movement in May as the fuel adjustment rate remained unchanged.Education, Recreation and Reading: the Education, Recreation and Reading sector dropped 0.1 percent in May as a result of a two percent and 0.7 percent decrease in the capital costs of boats and televisions, respectively.Transport and Vehicles: The Transport and Vehicle sector decreased 3.6 percent for the month. The decline was attributed to a 14.8 percent reduction in the price of airfares and an 11.7 percent drop in the cost of overseas hotel accommodations. In contrast, there was a 2.6 increase in the capital cost of cars.