Bermuda's retail sector continued to show weakness in June as Government's retail sales Index edged up just 1.2 percent in June.

After adjusting for retail inflation, sales fell four percent – the fourth decline in volume recorded in the last six months.

Government also announced yesterday that overall inflation rose 4.4 percent in June, down from 4.7 percent in May and a near-20-year high in April of 5.3 percent.

On retail sales, consumer spending was estimated at $99.6 million, and Government said it believed this was due to consumers beginning to feel the pinch from rising fuel prices and food costs.

Government said inflation was driven by the rent sector, which accounts for about a third of the Index, which advanced 2.5 percent year over year. Fuel and power soared 22 percent year over year and food jumped 4.9 percent.

For more on the economy, see tomorrow's Royal Gazette