July 18, 2024
The Statistical Institute of Jamaica (STATIN) reported that for June 2024, the point-to-point inflation rate was +5.4%; 0.2 percentage points higher than the 5.2% recorded for May 2023 to May 2024. Compared to May 2024, The All-Jamaica Consumer Price Index (CPI) for June 2024 increased by 1.1%.
The main driver of the monthly increase (1.1%) was a 1.4% increase in the index of the ‘food and Non-Alcoholic Beverages’ division, influenced mainly by the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class rising by 6.8%. This was attributed to increased prices for produce such as cabbage, carrot, tomato and yam. Additionally, a 0.8% increase in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division also contributed to the rise in the inflation rate, owing to higher electricity prices and rent. Also, the ‘Transport’ division, increased by 1.3% due to the revised Jamaica Urban Transit Company (JUTC) fare structure.
The 0.2% upward movement in the inflation rate to 5.4% between June 2023 and June 2024, relative to May 2023 and May 2024 was primarily influenced by the following divisions: ‘Food and Non-Alcoholic Beverages’ (4.0%), ‘Transport’ (11.1%) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (5.4%).
The rise in the index for the ‘Food and Non-Alcoholic Beverages’ division was driven by a 3.8% increase in the ‘Food’ group. Key contributors to this increase were higher prices for oranges, ripe bananas, pineapples, and dried coconut, which significantly affected the ‘Fruits and Nuts’ class (11.1%). Additionally, the ‘Cereals and Cereal Products’ class (4.0%) saw an upward trend largely due to increased prices for rice, bread, and other bakery products.
The ‘Transport’ division experienced a notable increase, primarily due to a 15.3% increase in the index for ‘Passenger Transport Services.’ This was largely the result of a significant 19% hike in fares for route and hackney carriage taxis implemented on October 15, 2023.
In the ‘Housing, Water, Electricity, Gas and Other Fuels’ division, the index rise was mainly due to a 6.5% increase in the ‘Electricity, Gas and Other Fuels’ group. This increase was chiefly driven by higher electricity rates.
MAJOR CPI DIVISION MOVEMENTS
There was a 1.4% increase in the index for the ‘Food and Non-Alcoholic Beverages’ division, with the ‘Food’ group rising by 1.5% and the ‘Non-Alcoholic Beverages’ group by 0.5%. The ‘Food’ group increase was mainly attributed to a 6.8% rise in the ‘Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses’ class due to higher prices for agricultural produce such as cabbage, carrot, tomato, and yam. There were also increases in the index for ‘Cereals and Cereal Products’ by 0.5%, primarily from higher prices for bun and other pastries, while ‘Fruits and Nuts’ declined by 0.3% due to lower prices for melon, pineapple, and papaya. The ‘Non-Alcoholic Beverages’ group saw a 0.5% increase in the index for the ‘Water, Soft Drinks, and Other Non-Alcoholic Beverages’ class, influenced by higher prices for carbonated beverages.
The point-to-point inflation rate for this division was 4.0%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 2.4%, mainly driven by a 7.8% rise in the ‘Tobacco’ group due to higher prices for cigarettes. The ‘Alcoholic Beverages’ group rose by 0.5%, primarily due to increased prices for rum.
The point-to-point inflation rate for this division was 6.4%.
The index for the ‘Clothing and Footwear’ division increased by 0.2%. Both the ‘Clothing’ and ‘Footwear’ groups saw a similar 0.2% increase.
The point-to-point inflation rate for this division was 3.3%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.8%, driven by a 1.5% rise in the ‘Electricity, Gas and Other Fuels’ group due to higher electricity rates. Additionally, the cost of rent increased, with actual rent up by 0.4% and imputed rent up by 1.0%. However, the overall increase was moderated by a 1.8% decline in the ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ group due to lower water and sewage rates.
The point-to-point inflation rate for this division was 5.4%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 2.9%, primarily driven by a 3.8% rise in the ‘Goods and Services for Routine Household Maintenance’ group. This increase was significantly influenced by the 15.4% rise in the National Minimum Wage effective June 1, 2024, which impacted wages for domestic workers.
The point-to-point inflation rate was 5.6%.
The index for the ‘Health’ division increased by 0.6%, primarily due to a 0.6% rise in the ‘Medicines and Health Products’ group from higher prices for some prescription drugs. Additionally, the ‘Outpatient Care Services’ group saw a 1.0% increase due to higher fees for some general practitioners.
The point-to-point inflation rate was 4.4%.
There was a 1.3% increase in the index for the ‘Transport’ division, mainly due to a 2.1% rise in the ‘Passenger Transport Services’ group following the revised Jamaica Urban Transit Company Limited (JUTC) fare structure. This was partially offset by a 0.4% decline in the ‘Operation of Personal Transport Equipment’ group due to lower petrol prices..
The point-to-point inflation rate was 11.1%.
There was a 0.4% increase in the ‘Information and Communication’ division, mainly driven by a 0.5% rise in the ‘Information and Communication Services’ group due to higher telecommunication prices.
The point-to-point inflation rate was 5.3%.
The index for ‘Recreation, Sport and Culture’ increased by 0.1%. This was influenced primarily by higher prices for some stationery and pet supplies.
The point-to-point inflation rate was 4.7%.
The index for ‘Restaurants and Accommodation Services’ increased by 1.0%. This was influenced primarily by higher prices for meals away from home.
The point-to-point inflation rate was 3.6%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division increased by 0.2%. This was mainly influenced by higher prices for some personal care products and personal grooming services.
The point-to-point inflation rate was 3.8%.
Individual divisions saw the following changes:
1. Food and Non-Alcoholic Beverages: (+1.4%)
2. Alcoholic Beverages, Tobacco and Narcotics: (+2.4%)
3. Clothing and Footwear: (+0.2%)
4. Housing, Water, Electricity, Gas and Other Fuels: (+0.8%)
5. Furnishing, Household Equipment and Routine Household Maintenance: (+2.9%)
6. Health: (+0.6%)
7. Transport: (+1.3%)
8. Information and Communication: (+0.4%)
9. Recreation, Sport, and Culture: (+0.1%)
10. Education: (0.0%)
11. Restaurants and Accommodation Services: (+1.0%)
12. Insurance and Financial Services (0.0%)
13. Personal Care, Social Protection and Miscellaneous Goods and Services: (+0.2%)
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