Inflation rate hits 10-year high at 3.5% – The Royal Gazette

Updated: Jul 16, 2022 9:29 AM

Inflation rose to 3.5% in April, the highest rate since April 2012.

Inflation hit 3.5% in April, according to government figures released yesterday.

However, the prices of some goods and services increased by 25%, the increase in the fuel adjustment clause – 21.4% – propelling the fuel and electricity sector to increase by 9.2% in a month.

Year-over-year, staples like bread were up more than 8% and potatoes nearly 25%.

Jason Hayward, Minister for the Economy and Labor, said: “In April 2022, consumers paid 3.5% more than a year ago for the same basket of goods and services.

“This is the highest level of inflation recorded since August 2012, when the annual inflation rate was 3.1 percent.”

On average, annual increases were reported in the cost of overseas hotel rooms (up 69.6%), premium fuels (up 9.1%), flex fuels (up by 8.6%) and cars, the price of which increased by 1.5%. .

“The food sector grew by 5.4% year-on-year,” the minister added. The price of potatoes increased by 24.4%, steak by 21.7%, pineapples by 17.6% and bread by 8.3%.

The education, leisure and reading sector saw a 5% year-over-year increase, with the average cost of the local newspaper increasing by 25% and the average price of pleasure boats increasing by 20 %.

Year-over-year, the health and personal care sector increased 4.3%, with the average cost of health insurance premiums increasing 6%; prices for toiletries, cosmetics and perfumes increased by 3.5%; and prescription drugs increased by 2.4%.

Clothing and footwear prices rose 1.5% year-on-year, with the average cost of women’s sweaters, jewelry and men’s shirts rising 16%, 7.3% and 5.1%, respectively .

Price increases between March and April 2022 include:

• The increase in the fuel adjustment clause by 21.4%, which propelled the fuel and electricity sector to a jump of 9.2% for the month.

• The health and personal care sector increased by 2.2%, as the average cost of health insurance premiums increased by 2.8%.

• The household goods, services and supplies sector rose 2% in April. On average, price increases were reported for dining room furniture, which increased by 29.8%, television service subscriptions (up 9.6%), and bedroom furniture (up 8.3%).

• The food sector advanced by 0.4% in April. Increases were reported in the average cost of green peppers by 21.1%, eggs increased by 12.3%, lettuce by 9.1%, ice cream by 4.4% and baby food by 2.9%.

Supermarkets recently said food prices were set to rise by around 8% as Covid stocks ran out and charities warned people had to make tough choices about what foods to buy.

Earlier this month, Belco warned of price hikes after being allowed to increase its rates.

The government said it measures the annual inflation rate and the monthly inflation rate every month – annual rates are the changes from the same month last year, and monthly rates are the changes from the last month. The Consumer Price Index for April 2022 is available online at www.gov.bm/bermuda-business-statistics.