Business

Inflation bounces back to 2.4%

  • Costing more: Higher gasoline prices contributed to a 1.8 per cent rise in the fuel and power sector in May (Graph by the Department of Statistics)

Inflation climbed back to 2.4 per cent in May, having briefly dipped to 1.7 per cent in April, according to the latest data released by the Bermuda Government.

Between April and May the average cost of goods and services in the Consumer Price Index increased by 0.4 per cent. The all-items index rose to 103.3, meaning that the basket of goods and services that cost $100 in April 2015 now costs $103.30.

Higher gasoline prices during the past year contributed to a 5.5 per cent year-on-year increase for the transport and foreign travel sector. The fuel and power sector was likewise 18.9 per cent higher than in May 2016.

On a month-by-month basis, fuel and power was up 1.8 per cent in May, impacted by a fuel adjustment clause increasing 5.6 per cent.

Spare ribs, carrots and flour all increased by more than 6 per cent from April, contributing to a 1.7 per cent rise in the food sector.

Cigarettes increased on average by 9.5 per cent between April to May, and the cost of wine was up 5.4 per cent. The tobacco and liquor sector was up 4.7 per cent.

Month-on-month, there was no change in the rent, clothing and footwear, health and personal care, and transport and foreign travel sectors.

Bermuda’s inflation rate was also 2.4 per cent in March.

For comparison, the rate of inflation during May in the UK was 3.7 per cent, while in the US it was 1.9 per cent, and in Canada it was 1.3 per cent.

The consumer Price Index is produced by the Department of Statistics.