Declining energy prices have dampened the rate of inflation to a six-year low.

The rate of inflation slid to 1 per cent in September, according to Government statistics released today.

That is the lowest for any month since December 2009, when Bermuda was in the early stages of a recession.

Prices in the fuel and power sector fell 11.3 per cent from September 2014. Low global oil prices have made the fuel that Belco burns much cheaper, leading to a steep drop the fuel adjustment rate.

Transport and foreign costs were also 4.8 per cent lower than a year earlier.

However, the cost of living as a whole rose. The Consumer Price Index reported that food prices were 2.1 per cent higher than a year earlier, while the price of household goods and supplies rose 3.1 per cent, clothing and footwear 1.8 per cent and tobacco and liquor 1.3 per cent.

But the biggest driver of inflation was the cost of health and personal care, which rose 8.3 per cent year over year.

Between August this year and September, the cost of living rose 0.3 per cent.

Food prices, however, fell 0.1 per cent month to month, as the onions cost 10.4 pent cent less, and the price of fresh grapes (down 5.1 per cent) and legs of lamb (down 3.9 per cent) also fell.