Bermudians face an even harder struggle to make ends meet after inflation soared to five percent, the second highest level this year, according to the latest statistics released by Government.

The cost of living has got that much higher for the Island's consumers over the past year, with the price of food rising by 6.5 percent and fuel and power soaring 25 percent.

The Department of Statistics' Consumer Price Index revealed that the annual inflation rate climbed to five percent in August 2008, advancing 0.3 percent above July's 4.7 percent rate and the second time it has broken the five-percent mark, with the first being 5.3 percent in April.

Food was the biggest driving force behind the jump in inflation, increasing one percent from July and pushed up by the cost of oranges (+11.1 percent), flour (+10.5 percent), fresh lettuce (+9.4 percent), fresh pork loin (+7.5 percent), sweet biscuits (+6.2 percent) and eggs (+5.2 percent).

The other large contributor was the fuel and power sector, which was up 25 percent compared to August last year, while the fuel adjustment clause remained at 15.5 cents per kilowatt hour.

Tenants found themselves paying out more in rent as prices rose 2.7 percent, broken down into rent prices for units not subject to rent control advancing 0.3 percent, while there was a 0.2 percent climb in rent-controlled properties and repair and maintenance costs were up 0.7 percent, overall representing a 0.3 percent rise from the prior month.

Shoppers were also hit hard in the pocket with the price of household goods, services and communications accelerating 0.6 percent for the month as the average cost of home appliances such as refrigerators advanced 0.3 percent and supply product shot up 1.5 percent.

Smokers and drinkers, meanwhile, had to spend more on their tobacco and alcohol, with the sector rising 0.5 percent as a whole, the average cost of beer up 0.9 percent and wine rising 0.6 percent.

Health and personal care proved costly as well, reflected in the sector advancing 0.1 percent in August, of which household medical supplies and personal care supplies and services constituted 0.2 percent.

Elsewhere the clothing and footwear, and education, recreation and reading sectors stayed unchanged for the month, but there was some relief for drivers, who paid lower prices at the pumps with the cost of premium and mixed gasoline falling 5.7 percent and 5.9 percent respectively, totalling a 0.4 percent decline for month-on-month, but the level of inflation was still at 4.9 percent compared to last year.