Inflation Rate Climbs Again In Sept.
Bermuda residents paid 2.6 per cent more in September 2011 than they did a year ago for the basket of goods and services included in the Consumer Price Index, slightly higher than the 2.5 per cent inflation rate recorded in August 2011.
Between August and September 2011, the average cost of goods and services in the Consumer Price Index jumped 1.2 per cent. The all-items index increased from 116.9 to 118.3 index points in September. This means that the basket of goods and services that cost $100.00 in April 2006 now cost $118.30.
“The Fuel & Power and Food sectors also impacted strongly on the annual rate of inflation, as price shifts in these sectors were 17.0 per cent and 2.9 per cent, respectively.” said the report.
“The Fuel & Power sector increased 3.7 per cent in September due to a 7.8 per cent increase in the fuel adjustment rate. As a result, householders paid 3.8 per cent more for electricity costs in September.”
The 4-page report is below, click ‘Fullscreen’ or greater clarity:
This Index is a little off I think. Rent is 32.5% of the weighted average, and Fuel and power is 3%. Rent has only once been above the index average yearly increase once since 2005 and if you stripped it out this year, inflation would be +4.8%. Are lower rents helping the average renter that much- 32.5% of the whole inflation picture- or are they hurting the income of the landlords and their mortgages. These weightings seem a little out of whack for the actual consumption experiences.