The cost of medical insurance in Bermuda has risen by 14.7 percent since February 2009, according to the latest figures released by Government.

The Department of Statistics' Consumer Price Index revealed that the rate of inflation increased by 1.3 percent in February 2010 compared to the same period last year, driven by a 7.3 percent rise in the health and personal care sector, including the increases in medical insurance and self-prescribed medicines (8.7 percent).

Gerald Simons, president and CEO of major health insurer Argus Group, cited the 13 percent rise in premium for the standard hospital benefit, which was introduced by the Finance Minister in the Budget Statement as one of the possible reasons behind the big increase in medical insurance.

Another health insurer boss, BF&M's CEO John Wight said that the Island's medical inflation continued to increase at a higher rate than the overall inflation rate, due in part to an ageing population and more visits to the doctor and higher costs for treatments for conditions such as heart disease, cancer and diabetes. In addition, he said, Bermuda was also faced with a rising frequency of outpatient visits on a per person basis, while medical insurance paid by Bermudians continued to be influenced by medical inflation rates, particularly in the US, where they are serviced if the treatment is not offered in Bermuda.

Mr. Simons said that the amount of money spent on heath care was rising faster than changes in other expenses as people consumed more of those services and demand for them grew.

He added that as advertising for the latest drugs available increased they became more sought after and thus the prices went up. Mr. Simons said that the Argus Health Fair, which was being held during Public Health Week this week, was an opportunity for people to do something about their own situations to offset the rising costs of health care.

"We can't do much about an ageing population or advertising campaigns by big manufacturers, but we can control a number of lifestyle issues including smoking, excessive use of alcohol, lack of exercise and poor nutrition," he said.

"And at the Health Fair today we have focused on the exercise component of that equation and we want to encourage people to get up and Walk the Walk with Argus."

Inflation was at its highest since August 2009 when it reached 1.6 percent, up 0.1 percent on the previous month's total of 1.2 percent, but the average cost of goods and services dropped by 0.5 percent between January and February. The largest decliner was the fuel and power sector, which was down 8.5 percent year-on-year.

Among the other main contributors were household goods, service and communications, and the rent sectors, which were up 2.7 percent and 0.9 percent respectively.

On a month-to-month basis, tenants paid out more as the rent sector inched up 0.1 percent, due to a 0.2 percent increase in rent-controlled properties.

Meanwhile the average price of toiletries, cosmetics and perfumes rose by 1.2 percent, adding to a 0.1 percent increase in the health and personal care sector.

Householders saw their fuel bills increase by 0.2 percent in February, with consumers spending 2.5 percent more on a cylinder of propane gas.

Motorists enjoyed a 2.8 percent fall in the transport and vehicle sector as a result of a 0.3 percent decline in the average cost of cars, a 6.6 percent dip in airfares and a 20.1 percent drop in the cost of overseas hotel accommodation.

Food prices fell 0.6 percent for the month, with fresh fruits (16.2 percent), canned soups (2.3 percent) and cheeses (four percent) the chief contributors, while the tobacco and liquor sector contracted 0.5 percent, reflecting the 1.7 percent decrease in the price of beer and 1.1 percent drop in the price of wine, despite spirits rising by two percent.

The household goods, services and communications sector declined 0.1 percent, as the average cost of big ticket items such as refrigerators, washers and dryers was down 1.3 percent.

There was also some respite for shoppers as the clothing and footwear sector remained unchanged in February, as did the education, recreation and reading sector.