The island’s rate of inflation fell by 0.5 per cent last month - but still remains high at 4.1%.

And there is a warning the recent hurricanes will impact on US oil production which will result in higher petrol prices and upward inflationary pressure.

Inflation as measured by the consumer prices index has been rising since August following a period of deflation. It peaked at 4.6 per cent in July.

Inflation as measure by the retail prices index fell 1.1% in July to 7%.

Recreation and culture became the most significant contributing factor to inflation in August, with rising costs of various sports equipment, leisure activities and entertainment.

Food, restaurants and hotels also contributed significantly, with the cost of most groceries having increased as a result of worsening exchange rates, particularly with the EU.

The latest inflation report notes: ’Recent events such as the hurricane that have signficantly impacted on US oil production have not yet had an impact on the rate of inflation.

’However, it is expected that the cost of petrol is likely to rise in the UK as a result, and therefore result in upward inflationary pressure.’