Bermuda's rate of inflation edged up slightly to 3.1 percent in February, according to Government figures released yesterday.

The chief cause of the increase was said to be a jump in the average cost of electricity. February's rate was only moderately higher than the three percent recorded in January, but lower than during the second half of 2003 when the rate of inflation went as high as 3.8 percent in September.

The data was revealed in Government's Consumer Price Index which tracks, on a monthly basis, the rate of change in general pricing for consumer goods and services. For the month of February, the statistics department reported that the all-items index stood at 125.4 points which was up from the 125.1 points recorded in January, meaning consumers had seen an increase of 0.2 percent in the cost of general goods and services.

The biggest surprise for consumers may have been a surge in electricity charges as the fuel and power sector posted a 2.6 percent jump during the month. The rise in the average cost of electricity came as the fuel adjustment clause jumped a steep 17.1 percent percent to leave people with, on average, increased electrical charges by 2.5 percent. Those buying cylinders of propane gas would also have paid out more with the cost of that commodity going up 4.1 percent in February.

Other sectors also posted increases, including slightly higher grocery bills as the cost of food edged up 0.2 percent. Items to post the biggest cost jumps were instant coffee which was 3.4 percent more expensive, while baby food came in at 2.1 percent higher. Soda cost 1.1 percent more, sliced bread and cereal were 0.5 percent more expensive but shoppers would have paid out 1.8 percent and 0.3 percent less at the till for fresh tenderloin and tinned peanuts.

The cost of household goods as well as the price of renting a home went up a marginal 0.1 percent, with the bulk of the increase being seen in rent controlled properties with a 0.2 percent gain.

The cost of clothing, footwear, health and personal care items were constant month to month, as was the price of tobacco and liquor. An increase in the cost of cigarettes was however put in place last month after Government increased 'sin' tax levels which pushed up the cost of a pack from $5.50 to $6.25.

It also became a little more expensive to travel abroad or buy a vehicle with the average price of cars and cycles increasing respectively by 0.5 percent and 1.4 percent. The cost of an airline ticket also rose 0.7 percent while hotel costs were 0.9 percent higher for February.

The CPI's education, recreation and reading sector advanced 0.2 percent month over month, which was attributed to an increase in the average cost of pleasure crafts costing consumers 5.3 percent more.

The Island's rate of inflation weighed in higher than a number of other countries in February with the 3.1 percent level comparing to to 1.7 percent recorded in the US, 2. 5 percent in the UK, 1.6 percent across the Euro-Zone and a much lower 0.7 percent in Canada.

Finance Minister Paula Cox predicted in February, in delivering the annual budget statement, that inflation for 2004 would stand around three percent.

Ms Cox added that while inflation had averaged 3.2 percent during 2003, she expected it to stabilise during the current year.

"With a cautiously optimistic outlook for oil prices in 2004, consensus forecasts for consumer price inflation in G7 countries for 2004 is in the range of 1.5 to 2.6 percent. Barring any sharp increases in university and private education costs in 2004, Government anticipates that Bermuda's inflation rate should moderate in 2004 and track in a range centred around three percent."