in June, according to latest Government figures.

From July to August, the rate fell from 2.8 percent to 2.6 percent although in some areas of the economy prices rose by more than that. In June the rate hit 3.2 percent as a result of unusually high price increases for motor vehicles.

In the food sector, prices rose on average by 0.1 percent with some products such as Bermuda fish rising by 3.7 percent and cabbages by 4.6 percent.

Those rises were offset by some large decreases such as cucumbers which fell in price by 8.5 percent and green peppers which fell by 7.9 percent.

In the industrial sector, the cost of fuel and power fell by 0.8 percent and the cost of tobacco and liquor rose by 0.1 percent.

The all-items consumer price index was unchanged between the months of July and August, holding steady at 101.5, according to the Government.

Despite the declines, the rate of inflation is still higher than in April and May when it was 2.1 percent and 2.3 percent respectively. The CPI is used as a gauge for pay increases and rent hikes.