The cost of living in the Balearics is still climbing and outpacing the rest of the country. This year the Balearic rate of inflation is the highest in Spain. Last month, prices rose by the national average of 0.2 per cent in the islands, but since the start of the year, Balearic inflation has been rising at 3.2 per cent. During August it was the costs of culture and entertainment which registered the biggest increases of 1.1 per cent, while in contrast, transport costs fell by 0.6 per cent and housing by 0.2. The Balearic rate of inflation for the past 12 months is 3.8 per cent with hotel, restaurant and care prices having risen by nearly seven per cent since August 2000. The cost of food stuffs and non alcoholic drinks have risen by 6.2 per cent during the same period, while overall, entertainment and culture costs have fallen by 0.8 per cent and communications costs by nearly two per cent.

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