February 18, 2022
Outline
According to STATIN (The Statistical Institute of Jamaica), the Consumer Price Index for January 2022 was 117.6, up 0.6 per cent from December 2022 which closed at 117. The upward movement was primarily attributable to an 8.4 per cent increase in the index of the heavily weighted ‘Restaurants and Accommodation Services’ division – due to higher prices for meals consumed away from home (Quick Serve Restaurants, Delivery Meals, Full-Service Restaurants etc). The inflation rate was also influenced by a 0.6 per cent increase in the ‘Transport’ division, owing to increased petrol prices and ‘Alcoholic Beverages, Tobacco and Narcotics’ owing to increased prices for beer products. Most subgroups within the heaviest weighted division, ‘Food and Non-Alcoholic Beverages,’ recorded marginal increases during the month except for the index for the division ‘Vegetables, Tubers, Plantains, Cooking Bananas and Pulses’, which fell by 3.6 per cent due to lower prices for some agricultural produce. This led to the heaviest weighted division in the Consumer Price Index not holding the same value from the previous month. The CPI was also tapered by the 1.5 per cent decline in the index for ‘Housing, Water, Electricity, Gas and Other Fuels’ – due to lower electricity rates which resulted in the index for the subgroup ‘Electricity, Gas and Other Fuels’ decreasing by 4.0 per cent.
The point-to-point inflation rate was 9.7 per cent and the fiscal year-to date inflation rate was 9.2 per cent for January 2022. Additionally, The Greater Kingston Metropolitan and Other Urban Centers both experienced inflation growth of 0.5%, while the Rural Areas recorded inflation of 0.6%.
Major CPI Division Movements
The index for the ‘Food and Non-Alcoholic Beverages’ division had a negligible increase for the month of January. The ‘Food’ subgroup also recorded a similar negligible movement, the ‘Non-Alcoholic Beverages’ subgroup increased by 0.8 per cent. Though most subgroups within the ‘Food’ subgroup had increases in their index: ‘Meat and other parts of slaughtered land animals’ increased by 1.5 per cent, ‘Cereals and cereal products’ moved up by 0.9 per cent and ‘Fish and Seafood’ went up by 1.0 per cent, these increases were however tapered by a 3.5 per cent decline in the index for the subgroup ‘Vegetables, tubers, plantains, cooking bananas and pulses.’ This decline resulted from lower prices for agricultural produce such as carrot, cabbage, irish potato and yam. The main contributors to the increase recorded in the ‘Non-Alcoholic Beverages’ group were the products, ‘Water, Soft Drinks & Other Non-Alcoholic Beverages’ (0.9%) and ‘Fruit and vegetable juices’ (1.0%). The point-to-point inflation rate for this division, was 9.9 per cent while the fiscal year-to-date rate was 10.6 per cent, as of January 2022.
The ‘Housing, Water, Electricity, Gas and Other Fuels’ division had a 1.5 per cent fall in its index as of January 31, 2022. This was mainly attributable to a 4.0 per cent decline in the index for the subgroup ‘Electricity, Gas and Other Fuels’ due to lower electricity rates. However, the movement of the division’s index was tapered by a 2.3 per cent increase in the index for the subgroup ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ as a result of higher water and sewage rates. The index for the subgroup ‘Maintenance, Repair and Security of the Dwelling’ increased by 0.8 per cent due mostly to increased paint prices. The point-to-point inflation rate was 11.2 per cent, while the fiscal year-to-date was 9.3 per cent as of January 31, 2022.
The index for the ‘Alcoholic Beverages’ division increased by 0.4 per cent. The main contributor to this movement was an increase of 0.6 per cent in the index for the subgroup ‘Beers’. For this division, the point-to-point inflation rate was 5.5 per cent, while the fiscal year-to-date rate was 4.8 per cent as of January 31, 2022.
The index for the ‘Health’ division, increased by 0.3 per cent. This movement was impacted by increases in the index for the subgroups ‘Medicines and Health Products’, by 0.3 per cent and ‘Outpatient Care Services’, by 0.6 per cent. For this division, the point-to-point inflation rate was 4.0 per cent and the fiscal year-to-date inflation rate was 2.9 per cent.
A 0.6 per cent increase was recorded in the index for the ‘Transport’ division. This upward movement was mainly attributable to higher costs for ‘Fuels and Lubricants for personal transport equipment’ which was the catalyst for a 2.5 per cent increase in the index for the subgroup ‘Operation of Personal Transport Equipment’. The point-to-point inflation rate was 13.8 per cent, while the fiscal year-to-date inflation rate was 12.3 per cent.
The index for the ‘Recreation, Sport and Culture’ division, increased by 0.3 per cent. The marginal uptick was due mainly to a 0.4 per cent price increase in the index for the subgroup ‘Newspapers, Books and Stationery’. The point-to-point inflation rate was 5.5 per cent with, the fiscal year-to-date inflation rate at 4.8 per cent.
The index for the ‘Restaurants and Accommodation Services’ division rose by 8.4 per cent in the month of January. An 8.5 per cent increase in the index for the subgroup ‘Food and Beverage Serving Services’ influenced the rise, due largely to higher costs for meals consumed at ‘Restaurants, cafes and the like’. There was also a 0.8 per cent rise in the index for the group ‘Accommodation Services’. For this division, the point-to-point inflation rate was 20.1 per cent, and the fiscal year-to-date rate 20.0 per cent.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division rose by 0.6 per cent for the review period. The subgroup ‘Household Appliances’ contributed the largest increase, moving upwards by 0.9 per cent. The index for the subgroups, ‘Furniture, Furnishings and Loose Carpets’ and ‘Goods and Services for Routine Household Maintenance’, each went up by 0.6 per cent, with ‘Household Textiles’ increasing by 0.3 per cent. For this division, the point-to-point inflation rate was 5.7 per cent and the fiscal year-to-date inflation rate at 4.6 per cent as of January 31, 2022.
Increased cost for ‘Insurance connected to Transport’ resulted in a 3.8 per cent increase in the index for the division ‘Insurance and Financial Services’. For this division, the point-to-point inflation rate was 3.8 per cent and the fiscal year-to-date inflation rate 3.8 per cent for the period under review.
For January 2022, the division ‘Personal Care, Social Protection and Miscellaneous Goods and Services’ rose by 0.2 per cent. The main factors which contributed to the upward movement in the index for this division were higher prices for some items within ‘Personal Care’, of 0.3 per cent and ‘Other Personal Effects’, of 0.1 per cent.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (0.0 %)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.4 %)
- Clothing and Footwear: (+ 0.5 %)
- Housing, Water, Electricity, Gas and Other Fuels: (- 1.5 %)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.6 %)
- Health: (+ 0.3 %)
- Transport: (+ 0.6 %)
- Information and Communication: (+ 0.1 %)
- Recreation, Sport and Culture: (+ 0.3 %)
- Education: (+ 1.4 %)
- Restaurants and Accommodation Services: (+ 8.4 %)
- Insurance and Financial Services (+ 3.8 %)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.2 %)
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