The price of a basket of groceries has risen by two percent in the last year, according to the latest statistics.

The inflation rate has risen from the 1.7 percent increase in good and services prices recorded in February, and will dent recent claims by Government that it has reduced the cost of living on the Island.

The figures, released last night by Government’s Department of Statistics, show that the average cost of goods and services increased by two percent between March 2013 and last month, including a 0.5 percent increase between February and March of this year.

The all-items index increased to 123.3 index points in March, meaning that a basket of goods and services that cost $100.00 in April 2006 now cost $123.30.

Yesterday Premier Craig Cannonier said that one of the most significant achievements of his Government since winning the general election 16 months ago was to reduce the cost of living.

“We promised during the election to do whatever we could to reduce the cost of living for people,” the Premier said in an article in The Royal Gazette.

“No other promise has made me realise how important it is for government to work with the community to get things done. And so we worked closely with grocers to introduce ten percent discounted shopping on Wednesdays. We launched the Regulatory Authority to deregulate the telecommunications industry, a move that has led to big reductions in the cost of internet and cell phone services.”

Health costs were the driving force behind the latest increase in the cost of living, with prices for healthcare rising 7.6 percent from March, 2013.

And despite successful Government negotiations with grocery stores to increase discounts at the tills, food prices also impacted strongly on the annual rate of inflation, rising by 3.2 percent from 12 months ago. In March, the average price of groceries rose by 1.2 percent.

The fuel and power sector increased 2.1 percent in March, negating a 2.1 percent decline in prices in February. Residential consumers paid 2.2 percent more for electricity due to an increase in the fuel adjustment rate.

In his statement yesterday. Mr Cannonier said that Government was still in talks with electricity supplier Belco, adding: “The company has submitted a proposal that may well lead to cost reductions for their lower-usage customers. We will continue to push for cost-of-living reductions wherever we can.”

The Transport & Vehicle sector increased for the third consecutive month, up two percent in March following a 1.2 percent increase in February. The average price of airfares and overseas hotel accommodations rose by 7.1 percent and 5.5 percent, respectively.

The household goods, services and communications sector inched up 0.1 percent while the tobacco and liquor, rents, and clothing and footwear sectors all remained static. The Education, Recreation and Reading sector was also unchanged in March, following an increase of 0.2 percent in February.