The annual rate of inflation hit its lowest point in more than five years in March, as prices rose 1.2 per cent from a year earlier.

Government statistics released today showed how the slump in global oil prices has slowed down the increase in the cost of living in Bermuda.

The breakdown of the figures that make up the Consumer Price Index (CPI) showed prices in the fuel and power segment slumped 6.6 per cent in the year to March, helped by the dramatic slide in the fuel adjustment charge on electricity bills, while the transport and fuel segment saw prices fall 2.5 per cent.

Despite these increases the overall cost of living still rose over the year, driven primarily by a 7.3 per cent increase in health and personal care costs and a 2.7 per cent increase in the cost of food.

The last time the annual inflation rate was so low was in January 2010, when it was recorded at 1.2 per cent.

In the month-to-month analysis, there was evidence of oil prices rebounding from multi-year lows.

Prices in the transport and vehicle sector rose 0.7 per cent between February and March, driven by a 2.4 per cent rise in the cost of premium fuel, while the fuel and power sector saw a 1.3 per cent increase as electricity costs jumped 1.4 per cent from February.

Food prices also rose month to month, as the price of pasta climbed 6.4 per cent, powdered drink mix rose 3.9 per cent and ice cream prices rose 2.3 per cent.