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Rate of inflation falls to 0.8%

Cost of living: Bermuda’s rate of inflation fell back to 0.8 per cent in September (Photograph by Mario Proenca/Bloomberg)

The inflation rate fell to 0.8 per cent in September, down from 1.5 per cent the month before.The Consumer Price Index was 106.1, meaning that a basket of goods and services that cost $100 in April 2015, would have cost $106.10 in September.Year-on-year, there has been a 3.8 per cent rise in prices in the health and personal care sector, a main driver of this being the change in the average cost of health insurance premiums.In addition, the food and rent sectors saw rises of 2.9 per cent and 1.7 per cent, respectively.In September, there was a 0. 4 per cent increase in the education, recreation, entertainment and reading sector, pushed higher by a 2.5 per cent in the average cost of tuition fees for local private schools.In the tobacco and liquor sector there, was a 1.1 per cent increase in prices, with wines up 3 per cent, and beer up 0.1 per cent.There was a 0.2 per cent in the food sector, with the average cost of sugar and sugar confectionery rising on average by 1 per cent, drink mix by 4.5 per cent, and pork loins by 6.8 per cent.Sectors that were unchanged month-on-month were clothing and footwear, fuel and power, health and personal care, and household goods, services and supplies.The rent sector dropped 0.2 per cent as the average cost of rental properties not subject to rent control decreased 0.5 per cent.Meanwhile, the transport and foreign travel sector fell 3 per cent, thanks to lower prices in the average cost of overseas airfares, down 10.4 per cent, and a 16.4 per cent drop in overseas car rentals.For comparison, the September rate of inflation in the US was 1.7 per cent, in Canada it was 1.9 per cent, and in the UK was 2.4 per cent.The Consumer Price Index was published by the Department of Statistics.• Click on Related Media to access a PDF of the CPI bulletin