December 22, 2021

According to the Statistical Institute of Jamaica (STATIN), the consumer price index for November 2021 remained at 116.0, unchanged from October 2021. Despite marginal increases in most divisions, November’s CPI was tapered by a decline in the heavily weighted ‘Food and Non-Alcoholic Beverages’ division. The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 2.8 percent mainly due to increases in the rates for electricity, water and sewage. Additionally, the index for the ‘Transport’ division advanced by 0.6 percent, due largely to higher petrol prices. However, the overall movement in the inflation rate was held steady by a 1.8 percent decrease in the index for the ‘Food and Non-Alcoholic Beverages’ division – mainly attributable to lower prices for some agricultural produce such as yam, tomato and cabbage, due to improvements in local supplies, which resulted in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ decreasing by 10.3 percent, the most in the month.

The point-to-point inflation rate was 7.8 percent, the fiscal year-to date inflation rate was 7.7 percent, and the calendar year-to-date inflation rate was 8.2 percent. Additionally, for November 2021, The Greater Kingston Metropolitan and Other Urban Centres both experienced inflation growth of 0.2%, while the Rural Areas recorded deflation of 0.2%.

CPI Division Movements

For November 2021, the index for the ‘Food and Non-Alcoholic Beverages’ sector fell by 1.8 percent. This was the only division to experience a decline over the review period. A 1.9 percent drop in the index for the ‘Food’ category was mostly attributable to a 10.3% drop in the index for the ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ class – the steepest decline for the period. Lower prices for agricultural goods such as tomato, cabbage, yam, and potato as a result of improvements in supplies contributed to the fall. However, gains of 1.4 percent in the index for the class ‘Cereal and cereal goods’ and 1.2 percent in the index for the class ‘Meat and other parts of slain land animals’ moderated the fall within the group. The increase in ‘Cereal and cereal goods’ was primarily due to a rise in chicken prices, while the increase in ‘Meat and other parts of slain land animals’ was primarily due to a rise in chicken prices. The index for the ‘Non-Alcoholic Beverages’ group increased by 0.4 percent, with the class ‘Fruit and vegetable juices’ accounting for most of the increase. The point-to-point inflation rate for this division was 7.9%, the fiscal year-to-date inflation rate was 11.1%, and the calendar year-to-date inflation rate was 10.4%.

The index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’ advanced by 2.8 percent. This movement was mainly because of increased electricity, water and sewage rates. This resulted in the index for the two groups, ‘Electricity, Gas and Other Fuels’ and ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ increasing by 7.7 percent and 1.5 percent respectively. The index for the group ‘Maintenance, Repair and Security of the Dwelling’ increased by 0.8 percent due mainly to increased prices for paint. For this division, the point-to-point inflation rate was 8.3 percent, the fiscal year-to-date inflation rate was 5.7 percent, while the calendar year-to-date inflation rate was 7.6 percent.

For November 2021, the index for the division ‘Alcoholic Beverages, Tobacco & Narcotics’ grew by 1.1%. The main driver of this shift was a 1.8% increase in the index for the class ‘Beer.’ The point-to-point inflation rate for this division was 4.6%, the fiscal year-to-date inflation rate was 3.7%, and the calendar year-to-date inflation rate was 4.3%.

The index for the ‘Clothing and Footwear’ division increased by 0.5 percent for November 2021. Within this division, the index for the groups ‘Clothing’ and ‘Footwear’ moved up by 0.6 percent and 0.2 percent respectively. For November 2021, the point-to-point inflation rate was 4.7 percent, the fiscal year-to-date inflation rate was 3.0 percent, while the calendar year-to-date inflation rate was 3.6 percent for this division.

The index for the ‘Health’ division increased by 0.3% for November 2021. This was mostly due to a 0.2% increase in the index for the group ‘Medicines and Health Products’ as a result of higher costs for over-the-counter cold and flu drugs. Due to increasing fees for general practitioners, the index for the ‘Outpatient Care Services’ group climbed by 0.5%. The point-to-point inflation rate for this division was 4.3 percent, the fiscal year-to-date inflation rate was 2.2 percent, and the calendar year-to-date inflation rate was 3.4 percent.

There was a 0.6 percent rise in the index for the ‘Transport’ division for November 2021. This was largely because of higher petrol prices for personal transport equipment. The point-to-point inflation rate was 14.2 percent, the fiscal year-to-date inflation rate was 11.6 percent, while the calendar year-to-date inflation rate was 13.1 percent as at November 2021.

For the ‘Recreation, Sport and Culture’ division, the index increased by 0.5 percent for the period under review. The index for the groups ‘Newspapers, Books and Stationery’ and ‘Garden Products and Pets’ registered increases of 0.6 and 0.4 percent respectively. For this division, the point-to-point inflation rate was 5.6 percent, the fiscal year-to-date inflation rate was 3.9 percent and the calendar year-to-date rate was 4.6 percent as at November 2021.

For November 2021, the index for the division ‘Restaurants and Accommodation Services’ climbed by 0.3%. The index for the group ‘Food and Beverage Serving Services’ rose by 0.3 percent, which had a significant impact on the movement. During the review period, the index for the ‘Accommodation Services’ group increased by 1.1%. As of November 2021, the year-to-date point-to-point inflation rate for this division was 10.7%, the fiscal year-to-date rate was 10.3%, and the calendar year-to-date rate was 10.4%.

For November 2021, the index for the ‘Furnishings, Household Equipment, and Routine Household Maintenance’ section grew by 0.6%. This was mostly due to a 0.6 percent increase in the index for the category “Goods and Services for Routine Household Maintenance” as a result of increased costs for laundry soaps, detergents, all-purpose cleaners, and disinfectants. All other groups in the division had increases in their indexes, including ‘Furniture, Furnishing and Loose Carpets’, which increased by 0.9 percent, and ‘Household Appliances,’ which increased by 1.4 percent. The point-to-point inflation rate for this division was 5.5 percent, fiscal year-to-date inflation was 3.4 percent, and calendar year-to-date inflation was 4.6 percent.

Individual divisions saw the following changes:

1. Food and Non-Alcoholic Beverages: (- 1.8%)
2. Alcoholic Beverages, Tobacco and Narcotics: (+ 1.1%)
3. Clothing and Footwear: (+ 0.5%)
4. Housing, Water, Electricity, Gas and Other Fuels: ( + 2.8%)
5. Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.6%)
6. Health: (+ 0.3%)
7. Transport: (+ 0.6%)
8. Information and Communication: (+ 0.1%)
9. Recreation, Sport and Culture: (+ 0.5%)
10. Education: (0.6%)
11. Restaurants and Accommodation Services: (+ 0.3%)
12. Insurance and Financial Services (0.0%)
13. Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.6%)

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