Consumer Price Index – May 2017

Consumer Price Index- May 2017

The inflation rate for the month May 2017 was 0.1%, following and upward movement of 0.3% in April 2017. The movement was credited to a 0.1% increase in the division ‘Food, Non-Alcoholic Beverages and Tobacco’. The division ‘Transport’ moved up by 0.2%, while the ‘Alcoholic Beverages and Tobacco increased by 1.6%. The upward movement in the index was tempered by 02% decline in the division ‘Housing, Water, Electricity, Gas and Other Fuels.’ The 0.3% inflation rate for May 2017 resulted in a calendar year-to-date inflation rate of 1.4%.

The ‘Food and Non-Alcoholic Beverages’ division reported a 0.1% increase for May, relative to 0.1% movement in April 2017. Within the division the group ‘Food’ rose 0.1%, while ‘Non-Alcoholic Beverages’ increased by 0.2%. The increase in the price of ‘Food’ was due to increase in the classes ‘Fruit’ up 0.6%, ‘Breads and Cereals’ up 0.4% and ‘Starchy Foods’ moving up by 0.4%. On the other hand, a decline of 0.8% in the class ‘Vegetables’ was recorded which moderated in the increase in the inflation rate for this division. The decline in the group ‘Vegetables’ resulted from lower price for produce such as cabbage and sweet pepper.Within the ‘Non-Alcoholic Beverages’ the class ‘Coffee, Tea and Cocoa’ rose by 0.3%, while ‘Minerals Waters, Soft Drinks, Fruit and Vegetable Juices’ increased by 0.2%.

The ‘Alcoholic Beverages and Tobacco’ division recorded an increase of 1.6%. This was due to in the increase in prices for ‘Spirits’, ‘Wines’ and ‘Tobacco’. Due primarily from the effect of the increase in Special Consumption Tax (SCT) on cigarettes and alcoholic beverages.

For the month of May the division ‘Housing, Water, Electricity, Gas and Other Fuels’ posted a 0.2% decline. The ‘Electricity, Gas and Other Fuels’ group was the main contributor to the decline, recording a 0.3% decrease due to lower electricity rates, while ‘Water Supply and Miscellaneous Services Related to the Dwelling’ also documented a 0.3% fall as well. The decline stemmed from lower water and sewage rates. The ‘Clothing and Footwear’ division posted a 0.1% increase in the index for May 2017. The ‘Clothing’ group which when up by 0.2% was the main contributor to the increase in the division.

For the month of April 2017, the ‘Health’ division reported a 0.1% increase, due to a 0.2% increase in the group ‘Health Services’ and a negligible movement in the group ‘Medical Products, Appliances and Equipment’. The ‘Transport’ division recorded an increase of 0.2% in May 2017. This was a direct result of the increase in the price of petrol.  Furthermore, the division ‘Recreation and Culture ‘recorded an increase of 0.3% for the month, driven by the increase in prices of ‘Fertilizer and Manure’ and ‘Medical care for Pets and Animals.’

The division ‘Furnishings, Household Equipment and Routine Household Maintenance’ increased by 0.3% in May 2017. The groups ‘Tools and Equipment for House and Garden’ up 0.4% and ‘Goods and Services for Routine Household Maintenance’ up 0.3% and ‘Household Textiles’ up 0.2% were the main contributors. There was a 0.3% increase in the ‘Restaurants and Accommodation Services’ largely due to Meals consumed away from home.

The Inflation rate year to date is 0.4%, while the point-to-point rate (May 2016 – May 2017) and fiscal year 2016/ 2017 was 4.6%.Individual divisions saw the following changes:

  1. Food and Non-Alcoholic Beverages: (0.1%)
  2. Alcoholic Beverages and Tobacco: (1.6%)
  3. Clothing and Footwear: (0.1%)
  4. Housing, Water, Electricity, gas and Other Fuels: (-0.2%)
  5. Furnishing, Household Equipment and Routine Household Maintenance: (0.3%)
  6. Health: (0.1%)
  7. Transport: (0.2%)
  8. Communication: (0.0%)
  9. Recreation and Culture: (0.3%)
  10. Education: (0.0%)
  11. Restaurants and Accommodation Services: (0.3%)
  12. Miscellaneous Goods and services: (0.1%)