HAMILTON, Bermuda (CMC):

Householders had to pay less for electricity in January but inflation rose to more than five per cent again, according to latest figures released by government.

Belco, the island's sole electricity provider, said the fuel adjustment rate decreased from 19 cents (US) per kilowatt hour to 17.50 cents per k/w in January and is now at $12.50 for March.

The Department of Statistics Consumer Price Index report revealed that the fuel and power sector dropped by 2.1 per cent in January - with the cost of a cylinder of propane gas declining by 10.2 per cent - despite prices increasing by 24.5 per cent year on year.

Inflation climbed

Overall, consumers paid 5.2 per cent more in January 2009 than they did a year ago as inflation climbed 0.3 per cent from 4.9 per cent in December 2008, back to the same level as November last year.

The food sector was the biggest contributor to the 12-month increase, with the annual rate of price increase for the sector reaching 8.4 per cent.

The rent sector also impacted significantly on the annual rate of inflation via a 2.6 per cent price shift, as tenants paid out 0.2 per cent more on average on rents and controlled and non-controlled rental properties moving up one per cent and 3.6 per cent respectively.

Food prices rose by 0.9 per cent in January, driven by frozen poultry (3.2 per cent), local fish (4.6 per cent) and bottled water and sodas (7.3 per cent).

Motorists were also hit in the pocket, with the transport and vehicle sector experiencing a 1.5 per cent increase, through higher petrol (gasolene) prices for premium (4.9 per cent) and mixed blends (four per cent), while the foreign travel sub-index showed the cost of hotel accommodation rising by 6.8 per cent.

Increase in other sectors

Other sectors which saw an increase, including household goods, services and communications, up 0.3 per cent for the month, attributed to a 3.1 per cent rise in the cost of childcare services, education, recreation and reading, which edged up 0.2 per cent, partially down to the average cost of boat fuel climbing 4.9 per cent during the month.

Drinkers and smokers also had to fork out more for their favourite brands, with the tobacco and liquor sector increasing by 0.5 per cent for the month, reflecting a 1.6 per cent rise in the price of wine, while clothing and footwear dropped by 1.2 per cent as the average price for men's and women's apparel decreased one per cent and 3.6 per cent, respectively.