2.8 percent, according to Government statistics published yesterday.

The Consumer Price Index, which is used as a gauge of inflation in Bermuda, rose to 2.9 percent in January -- the highest rate since May, 2000.

The Government statistics department, which compiles the data, said there was no change during the month of the cost of goods and services and the all-items index remained at 115.4 points.

The cost of transport and vehicles varied the most during the month, falling 0.7 percent in February.

This downward movement was due primarily to a decline in the average cost of airfares, which fell 4.7 percent. This was due to discounted air tickets offered on special during February.

The cost of hotels overseas also contracted by 0.6 percent during the month.

The cost of food continued to rise, up 0.2 percent in February. The highest price rise was for green peppers which rose 18.7 percent.

Cucumbers rose 3.6 percent, beverages three percent, oranges 2.3 percent, cabbage 1.7 percent and cantaloupes 0.8 percent.

The statistics department attributed the sharp rise in the cost of fresh fruit and vegetables in part to the continued adverse weather conditions experienced in the southern growing regions of the United States.

The cost of rented accommodation continued to rise, and was up 0.2 percent during the month, but the cost of the average rents for controlled properties remained relatively static while decontrolled properties increased by 0.2 percent.

The price of clothing and footwear remained unchanged over all, but the cost of dry cleaning for both men and women's clothes rose by 0.4 percent.

Tobacco and liquor costs remained the same, but fuel and power costs fell by 0.6 percent. The fuel adjustment clause fell by 5.3 percent which led to lower electricity costs (down 0.8 percent). However this saving was balanced out by the rise in the cost of cylinder propane gas, which was up 0.9 percent.

The cost of household goods, services and supplies remained relatively static, the statistics department reported. But within the sector the cost of washers and dryers went up by 2.9 percent. And the cost of food wraps and trash bags rose by 0.5 percent and insecticides rose by 0.6 percent. But these increases were offset by the increase in the cost of writing materials, which were down 1.2 percent.

The cost of education, recreation and reading went up by 0.2 percent. The capital cost of buying a boat went up by 3.8 percent. And boat owners also experienced a rise in the costs of repair and maintenance -- up one percent during the month.

The cost in the health and personal care sector rose by 0.1 percent as consumers paid higher prices for non-prescription medicines and personal care supplies (toiletries, cosmetics and perfumes), which rose 0.3 percent and 0.4 percent respectively.

BUSINESS BUC