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Inflation inches up to 2.1%

Economic data: Bermuda’s rate of inflation rose 0.1 of a percentage point in October to 2.1 per cent, as recorded by the Consumer Price Index

Inflation edged up to 2.1 per cent in October, 0.1 of a percentage point higher than the month before.

For the second consecutive month, the education, recreation, entertainment and reading sector was the largest contributor to the year-over-year change. The sector increased 4.2 per cent, compared to 4.3 per cent the previous month.

The health and personal care sector and the rent sector also impacted the year-over-year increase, rising 3.3 and 1.3 per cent, respectively.

Consumers paid 2.1 per cent more in October 2016 than they did a year ago for the basket of goods and services included in the Consumer Price Index.

Between September and October, the average cost of goods and services in the CPI was unchanged. The all-items index remained at 102.7 in October. This means that the basket of goods and services that cost $100 in April 2015 now costs $102.70.

The food sector saw a 0.1 per cent increase for a third consecutive month. Among items that cost more in October were roasting chickens, up 7.5 per cent, eggs, which were up 4.5 per cent, and salad dressing, up 3.5 per cent.

Small increases in the cost of men’s and children’s clothing, contributed to a 0.3 per cent increase in the clothing and footwear sector in October. There was no monthly change in the rent sector or in tobacco and liquor sales.

A 2.6 per cent increase in the average cost of gasoline was offset by a 3.3 per cent decrease in the average cost of air fares, which mean there was no change to the transport and foreign travel sector during October.

During October, the fuel adjustment rate decreased by 2.9 per cent, which was a factor in the fuel and power sector falling 0.9 per cent.

For comparison, the inflation rate during October in Britain was 2 per cent, in the US it was 1.7 per cent, and in Canada it was 1.5 per cent.

The data was released by the Department of Statistics.

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