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BERMUDA | RSS PODCAST

Inflation rate drops in August

percent, down from 2.1 percent for the year to July.The decline in Bermuda's consumer price index came even as there were increases in the rent, food, transport & vehicle and education, recreation & reading sectors.

percent, down from 2.1 percent for the year to July.

The decline in Bermuda's consumer price index came even as there were increases in the rent, food, transport & vehicle and education, recreation & reading sectors.

The all-items index was static, remaining at the 108.2 index points that was recorded for July.

The only sector recording a decline was fuel & power, which declined 2.2 percent. Lower world fuel prices impacted on the local fuel adjustment clause, which dived 30.7 percent from the July, 1998 figure.

It led to a 2.3 percent drop in the cost of electricity.

There was no price change at all in the remaining sectors that include clothing & footwear, tobacco & liquor, services & supplies, health & personal care, and household goods.

Food rose 0.3 percent month over month, as price increases were recorded for local carrots (8.4 percent), celery (3.9 percent), soups (3.8 percent), sauces & pickles (2.4 percent) and cabbage (2.2 percent).

The rent sector advanced 0.1 percent, as did the category comprising education, recreation & reading. In the latter bracket, there was upward movement in the average cost of pleasure boats (0.1 percent), toys and games (0.4 percent), and pet accessories and supplies (0.5 percent).

The 0.2 percent rise in the transport & vehicle sector was primarily due to a 2.3 percent increase in airfares.

But its effect was minimised by a decline in fuel prices in which premium and mixed gas fell 0.9 percent and 0.8 percent, respectively, and the capital cost of cars reportedly fell 0.8 percent.