The rate of inflation in Bermuda dropped to its lowest level for at least 15 months as the sharp fall in world oil prices since last summer took effect, according to the latest Government statistics.

The Department of Statistics' Consumer Price Index (CPI) for March 2009 revealed that consumers paid 2.7 percent more for goods and services than last year, but the figure was considerably less than the 4.4 percent recorded in February, with the average cost of products declining by 0.3 percent between February and March.

This follows the rate of inflation peaking at 5.9 percent in September 2008 - the biggest rise over the past year.

The inflation rate, however, was still significantly higher than the US (0.2 percent), Canada (1.2 percent) and the UK (-0.4 percent) for March 2009.

Householders enjoyed the benefits of savings on their electricity bills, with the fuel adjustment clause dropping by 10.7 percent for the month due to lower fuel prices. The fuel and power sector as a whole fell by 5.3 percent as a result of lower electricity costs.

But consumers still found themselves forking out more, with the cost of food items increasing by 7.5 percent year-over-year and the food sector overall contributing most to the 12-month rise in the CPI.

However, on a month-to-month basis average food prices declined by 0.3 percent in March, with oranges (0.1 percent) and bananas (3.6 percent) among the main contributors.

The rent and health and personal care sectors also had a big impact on the annual rate of inflation, as price shifts in these sectors were 2.6 percent and 7.1 percent respectively.

Broken down, on a monthly scale the rental sector advanced by 0.2 percent, mainly attributed to by the 0.5 percent increase in rent-controlled properties as home owners continued to make improvements to their housing stock. Similarly, rental units not subject to rent control rose by 0.1 percent.

The health and personal care sector reared up by 0.3 percent in March, in response to a 2.8 percent increase in the average price of prescribed medicines.

The household goods, services and communications sector edged up 0.1 percent for the month, spurred on by a 1.5 percent rise in the price of household furnishings and textiles.

Smokers and drinkers also paid out more for their favourite brands, with the sector in general up 0.1 percent, reflecting increases in the average price of beer (0.1 percent) and spirits (0.2 percent).

Elsewhere, drivers reaped the rewards falling gas prices, which continued to decline through March by 1.2 percent and 1.3 percent for premium and mixed blends respectively.

Foreign travel costs, including airfare and hotel accommodation, experienced a three percent decrease as the transport and vehicles sector costs dropped 1.3 percent.

The education, recreation and reading sector advanced 0.2 percent for the month, in part down to a 0.4 percent increase in prices for magazines and boat repair, while pet care costs rose 1.6 percent during March.

The only sector which remained unchanged was clothing and footwear.