The Island?s rate of inflation jumped to 2.7 percent in May as consumers paid out more than they did a year ago for rent, fuel and power, according to a bulletin released by the Department of Statistics yesterday.

May?s inflation rate compares to April when the rate was recorded at 3.5 percent and during this period the average cost of goods and services edged down 0.5 percent.

The rent sector was was the strongest contributor to the 12-month increase in the Consumer Price Index as rent prices advanced 3.4 percent. Food and health and personal care sectors also affected the increase in the annual rate of inflation.

The fuel and power sector registered the largest increase year over year, with a 8.1 percent hike. Also on the rent front, prices for controlled properties jumped 4.7 percent year over year, while those not subject to rent control recorded an increase of 3.2 percent.

In May, tobacco and liquor consumers saw the average price of these items move up 0.1 percent. The overall increase was partially due to higher prices for wine, up 0.2 percent and beer up 0.1 percent while the price of carton of cigarettes moved up 0.1 percent.

Health and personal care costs rose 0.1 percent in response to the higher prices for ladies hair styling services and self-prescribed medicines rose 2.1 percent.

The average price of household goods, services and communications increased 0.1 percent. Rising prices for appliances such as stoves and power tools helped contribute to the increase in this sector.

The transport and vehicle sector fell 3.6 percent overall and this decline can be attributed to a decrease in the price of gasoline.

The price of gasoline edged down 1.0 percent for both premium and mixed blends after rising sharply in April.

Food prices declined 0.7 percent in May as items such as tenderloin steak, red grapes and fresh vegetable all saw reductions in price.

There was no change to the education, recreation and reading sector and the clothing and footwear sector also remained unchanged for the month of May.