A story in Wednesday?s about the Household Expenditure Survey goes a long way towards explaining why people are feeling stressed about the costs of life in Bermuda. Princes have really increased since 2000 when the last Survey was completed.

And it also helps to explain why, in spite of the fact ? and it is a fact ? that Bermuda has one of the most successful economies on the world, if not the most successful economy, that only one in four members of the public feel the economy is going in the right direction.

That figure was contained in a poll in today?s Business section, and was all the more surprising because it came just weeks after what was generally agreed to be a benign Budget, although even that got a lukewarm response from the public.

So what?s wrong? Certainly, the closure of Trimingham?s will have made some difference. The removal of institutions that have been around for so long that they seem to be permanent must affect people?s psyches.

Another factor is the round of scandals concerning the insurance industry, which may cause some weakness in Bermuda?s sole economic pillar.

Bermuda College economist Craig Simmons rightly said rising inflation was also to blame. He said that the economy is overheating and rising inflation means that prices will exceed wage increases, making it harder for those who are not fortunate enough to be pulling down six-figure salaries to make ends meet.

It is worth remembering too that it is not the cost of luxuries that is driving prices. It is the essentials of life. House prices, rents, the cost of electricity and fuel, education (at home and abroad) and health care are all rising either ahead of the inflation rate or in tandem with it. Only food is slowing down the pace.

At the same time, Bermuda is weighed down with higher expectations than many other countries, and that means that poverty is relative. But perception is reality in economics and life, and the ?have nots?, even if they have a lot more than 95 percent of the world?s population, still feel frustration.

One answer is to try to dampen those parts of the economy that are overheating without snuffing out growth altogether. That requires some raising of interest rates and restraint both in pricing and wages.

Dr. Simmons rightly also pointed to Government expenditures, whose growth has consistently exceeded inflation, as another place where restraint would be welcome.

Most people in Bermuda don?t claim to be economists, but they can sense that something is not right in the Bermuda economy. The Government and the Island?s economic leaders need to take notice.

?Tuesday?s editorial on the appointment of former Government Senator Milton Scott as Director of Labour in the Ministry of Home Affairs incorrectly attributed comments welcoming Mr. Scott?s appointment to Minister of Home Affairs Randy Horton. They were in fact made by Robert Horton, the Permanent Secretary of Home Affairs.