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Inflation edges up, again

inflation up to 2.9 percent for the month of May, according to Government figures released yesterday.

The cost of living has been pushed up after the cost of electricity jumped during the month because of a hike in the cost of fuel.

Bermuda's rate of inflation for May is behind the United States and the United Kingdom which has an inflation rate of 3.1 percent for May. But Canada has a lower rate of inflation, standing at 2.4 percent for the same month.

In March inflation in Bermuda peaked at 3 percent, but fell again in April to 2.7 percent. May's figures match those for February 2000.

During the month of May the cost of the price of goods and services rose by 0.3 percent and the all items index, which is used as an indicator of the cost of living, rose from 113 in April to 113.3 in May.

The cost of fuel and power saw the highest price hike, with the index for these products jumping 2.8 percent. The Government and BELCO-imposed "fuel adjustment charge'' was the main factor contributing to the rise in this sector. The fuel adjustment charge, which was worked out between the Ministry of Finance to level out the cost of electricity on the Island so it remained constant compared to the price of fuel, rose 21.3 percent in May driving the cost of electricity up by 2.9 percent.

Food prices rose by 0.2 percent during May 2000. Grocery items showing a noticeable difference in price included fresh broccoli, up 14.7 percent, imported lettuce per head, up 8.4 percent, frozen fish products, 7 percent, ground black pepper, 4.3 percent, fresh cucumber, 3.5 percent, fresh and frozen stewing beef, 3 percent, and sliced cheese singles up 3 percent.

Rent has gone up 0.2 percent -- with the average rent for both controlled and de-controlled housing up the same amount.

Rate of inflation edges up There was no significant change in the cost of clothing and shoes during May.

Tobacco and liquor rose slightly -- up by 1 percent. This was a direct result of an increase of 0.3 percent in the average price of beer. Cigarettes did not go up or down in price after two consecutive months in March and April when the price went up.

The cost of transport and vehicles rose by 0.5 percent. The cost of both car and motor cycle gasoline increased by 3.2 percent and 3.1 percent, respectively. In contrast, the average cost of purchasing a car fell by 0.1 percent while airfare prices to gateway cities dropped by 0.8 percent.

The bill for education, recreation, and reading went up by 0.3 percent.

Consumers paid more for club subscriptions (1.8 percent), sports fees (1.4 percent) and boat repair and maintenance (1.3 percent).

There was no change in price in the cost of health and professional care or in the cost of household goods, services and supplies. The consumer price index is a statistical tool used for measuring changes in the general level of prices of consumer goods and services purchased by private households. The index measured the changes in price of a mixed `shopping basket' of goods and services bought regularly.

CHART BERMUDA CONSUMER PRICE INDEX