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Inflation stays at 3.1 percent during May

Falling gas prices helped keep Bermuda inflation in check in June.

The rate of inflation in Bermuda remained at 3.1 percent from April through May, according to figures released by the Government yesterday.

Consumers paid 3.1 percent more in May, 2005 than they did a year ago for goods and services with the average cost of the items in the consumer price basket advancing 0.3 percent on the previous month. The all-items index rose from 130.8 points in April to 131.2 index points in May.

The Department of Statistics said that transport and vehicles, rent, food and tobacco and liquor were the main contributors to the month-over-month rate of price movement in the CPI.

A seasonal rise of five percent in overseas hotel accommodations accounted for a 0.7 percent increase in the transport and vehicles sector, according to the Department of Statistics.

In contrast, consumers paid lower prices at the pump as the price of premium and mixed gas decreased, along with the average cost of new automobiles.

The rent sector climbed 0.2 percent with the average rents for controlled properties up by 0.4 percent combined with a 0.3 percent increase in the average cost of building materials.

The cost of food purchased from grocery stores rose 4.7 percent in May resulting in a 0.2 percent advancement for the food sector Sweet biscuits, stewing beef cubes, fresh local Wahoo, cantaloupes, fruit juices, baked beans, sugar and tinned desserts were the main items contributing to the rise.

There was no change to the cost of clothing and footwear or fuel and power, but liquor prices advanced 2.3 percent during the month causing the tobacco and liquor sector to advance for the first time in eight months by 1.7 percent

The cost of household goods, services and supplies rose nominally by 0.1 percent in May, with the rise attributed mainly to higher average prices for floor coverings, blinds and televisions.

Education, recreation and reading rose by 0.1 percent with a 4 percent decline in toys, games and hobbies and a 2.1 percent decline boat fuel offset by a 4.9 percent increase in the average price of pleasure crafts and a 1.4 percent rise in sporting fees.

Health and personal care increased a modest 0.1 percent for the month due to a 0.2 percent increase in the cost of toiletries, cosmetics and perfumes.