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Inflation rate falls to 0.6%

Bermuda's annual rate of inflation remained below one percent for a third consecutive month in November.

Consumers paid 0.6 percent more in November for the basket of goods and services included in the Consumer Price Index, according to Government figures released yesterday.

That represents a fall of 0.1 percent from October. In September, inflation fell to its lowest level in more than three decades when it dipped to 0.2 percent.

The trend of low inflation is also being seen in the US, where the November rate was 0.4 percent, the UK (0.3 percent) and Canada (one percent), as the economic slowdown puts the brakes on price rises and raised the spectre of deflation.

Food prices edged up 0.3 percent during November, after remaining flat in the two previous months, but remained 2.7 percent higher than they were in November 2008.

The main drivers were canned vegetables, which rose 5.8 percent over the month, piork loin (+5.5 percent), apples (+6.8 percent) and cataloupe (up eight percent).

The biggest contributor to inflation was the health and personal care sector, which saw a 7.3 percent rise in prices year on year.

Rents were 1.1 percent higher than a year earlier and climbed 0.1 percent during the month.

November was a good month to travel, as consumers enjoyed lower airfares cheaper hotel accommodation overseas.

But getting around on the Island proved more expensive as the price of gasoline rose by 1.7 percent over the month.