The February Consumer Price Index shows the annual rate of inflation fell to 1.7%. The main upward driver was health, at 7.7% year over year, although prices actually fell compared to January. Otherwise, increases were low. Inflation has now been below 2% since April, 2013.
To be sure, the world is in a low inflation period, and Bermuda’s inflation rate remains higher than the US and Canada (both at 1.1%). But the slowdown in price increases is good both for local consumers and for the island’s competitiveness. It often does not feel like prices are slowing or declining when you’re paying the monthly bills, but the truth is that we are paying the same or less for many items.