Inflation is continuing to rise at a lower rate in Bermuda than in the United States -- boosting the local economy.

The annual inflation rate over the past year stood at 2.3 percent in April, the same as it was in March.

And over the past two years the Consumer Price Index, representing the cost of living, has been below that of the US for the first time 20 years.

The news has pleased Finance Minister the Hon. David Saul who is even more delighted by comments from visitors leaving the Island.

Dr. Saul said: "The rate is still slightly below the States and that is excellent for us.

"Whereas tourists, over the last five years, have generally said we are expensive when they are `debriefed' on leaving the Country, there are less of those comments at the moment.

"People are beginning to realise that if we drive prices up it will drive tourists away. We have to be very, very careful.'' Dr. Saul complimented both businesses and the unions for helping with the improved CPI. He said: "Bermuda businesses have chosen not to increase prices and have tried to claw back any losses very slowly.

"It has kept inflation down and made Bermuda's prices competitive for the tourists that are here.

"Last year was an excellent tourist year and a lot of that is down to the fact that we have kept costs down.

"Secondly, union settlements have all been reasonable and this has also helped to keep costs lower.'' In April, fuel and power prices increased by 3.4 percent, partly because of a rise in the price of propane gas.

Health and personal care also went up fairly dramatically due primarily to a rise in health insurance premiums of 4.5 percent and over-the-counter medicine prices by 2.1 percent.

There were smaller increases in clothing, tobacco and liquor and transport and vehicles. Public transportation fees fares increased by 10 percent.

The price of the "food basket'' rose by 0.3 percent because of increases in staple foods like beef and poultry.

Education, recreation and reading did not change while prices of household appliances dipped by 0.1 percent.