The cost of goods in Bermuda rose 3.7 per cent year-on-year, the highest recorded level of annualised inflation since December 2007, when the annual inflation rate was 3.6 per cent.
Food costs rose 6.4 per cent annually. Healthcare costs also rose with a six per cent increase in the cost of health insurance, a 2.4 per cent increase in prescription medicine and a 1.4 per cent increase in self-prescribed medicines and household medical supplies.
Premium and mixed fuel prices also rose at the pump by more than seven per cent—reflecting rises in the price before petrol prices were frozen in February. According to Jason Hayward, Minister of Economy and Labour, “on average, annual increases were reported in the cost of overseas hotel accommodations (up 51 per cent), airfares (up 12 per cent), premium fuels (up 7.5 per cent) and mixed fuels (up 7.1 per cent).”
Inflation increased 0.5 per cent between April 2022 and May 2022. The single-month period included a 0.8 per cent increase in the food sector, and a 3.2 per cent increase in transport & foreign travel (fuelled by a 17.6 per cent increase in the cost of airfares).
Impact of annual inflation
Hayward reported that the education, recreation, entertainment and reading sectors also strongly impacted the annual inflation rate with a 5.3 per cent increase, noting a 25 per cent increase in the cost of newspapers and a 20 per cent increase in the price of pleasure boats.
The household goods, services and supplies sector rose 2.9 per cent over the last 12 months. Dining room and bedroom furniture prices increased 44.7 per cent and 11.1 per cent, respectively. The average cost of goods and services covered by the CPI increased 0.5 per cent between April 2022 and May 2022.
The single-month period included a 0.8 per cent increase in the food sector, with notable increases in the costs of cantaloupes (up 20.7 per cent), fruit juices (up 6.2 per cent), dry breakfast cereals (up 4 per cent) and soft drinks (up 1.6 per cent).
Meanwhile, the transport and foreign travel sector saw a 3.2 per cent increase over the month, fuelled by a 17.6 per cent increase in the cost of airfares.