May 17, 2022
Outline
According to STATIN (The Statistical Institute of Jamaica), the All Jamaican Consumer Price Index at the end of April 2022 was 120.4, down 0.1 per cent from the index value recorded on March 31, 2022 – which closed at 120.4. The marginal monthly decline was primarily linked to a 3.1 per cent fall in the index of the ‘Housing, Water, Electricity, Gas and Other Fuels’ division due to lower electricity rates. On the contrary, due to higher prices for items such as rice, flour, cornmeal, chicken meat, beef stew and salted fish, ‘Cereals and cereal products’ (1.4%), ‘Meat and other parts of slaughtered land animals’ (1.6%) and ‘Fish and Seafood’ (3.0%) sub-divisions all saw increases. Increases in these heavily weighted sub-divisions caused the ‘Food and Non-Alcoholic Beverages’ division to register a 0.5 per cent increase.
The point-to-point inflation rate was 11.8 per cent. Upward movements in the indexes for the divisions, ‘Food and Non-Alcoholic Beverages’ (14.6 %), ‘Housing, Water, Electricity, Gas and Other Fuels’ (10.7 %), and ‘Transport’ (15.0 %) were the largest contributors to the increase for the review period while the calendar year to date (January 1 – April 30, 2022) inflation rate was 2.4 per cent. Additionally, The Greater Kingston Metropolitan Area experienced general price reduction of -0.1%. ‘Other Urban Centers’ experienced general price reduction of -0.2%. Inflation in the Rural Areas was 0%
Major CPI Division Movements
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 0.5 per cent at the end of April 2022. There was also a 0.5 per cent upward movement in the index for the ‘Food’ sub-division, while the ‘Non-Alcoholic Beverages’ sub-division rose by 1.1 per cent. The movement in the ‘Food’ sub-division was mainly attributable to increases in the index for the sub-divisions: ‘Cereals and cereal products’ (1.4%), ‘Meat and other parts of slaughtered land animals’ (1.6%), and ‘Fish and Seafood’ (3.0%). ‘Cereals and cereal products’ were mainly impacted by higher prices for items such as rice, flour, cornmeal, and biscuits, while the increase in the index for ‘Meat and other parts of slaughtered land animals’ was largely attributed to higher prices for chicken meat and beef stew. The index for the sub-division ‘Fish and Seafood’ was primarily impacted by an increase in the price of salted fish. However, the movement in the sub-division was moderated by decreases in the sub-divisions, ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (3.3%) and ‘Fruits and Nuts’ (1.1%). For the former, lower prices for Irish potato, plantain, lettuce, cucumber, cabbage, carrot, tomato were the main contributors while the fall in prices for melon and pineapple primarily impacted the latter. In the ‘Non-Alcoholic Beverages’ sub-division, the 1.5 per cent increase in the index for the sub-division ‘Water, Soft drinks and Other non-alcoholic beverages’ was the main contributor. The point-to-point inflation rate for this division was 14.6 per cent.
The ‘Housing, Water, Electricity, Gas and Other Fuels’ division registered a 3.1 per cent decline in its index at the end of April 2022. The main contributor to this movement was an 8.2 per cent fall in the index for the sub-division ‘Electricity, Gas and Other Fuels’ due to lower electricity rates as a result of reduced fuel charges. However, the movement for the overall division was tempered by the 1.1 per cent increase in the sub-division ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ because of higher water and sewage rates. The index for the sub-division ‘Maintenance, Repair, and Security of the Dwelling’ also increased by 0.8 per cent due mainly to higher prices for paint. The point-to-point inflation rate for this division was 10.7 per cent.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 1.1 per cent. The ‘Alcoholic Beverages’ sub-division registered an increase of 1.0 per cent with the sub-division ‘Beers’ having the strongest impact with a 1.4 per cent increase. The ‘Tobacco’ sub-division rose by 1.4 per cent due to increased cigarette prices. The point-to-point inflation rate for this division was 7.4 per cent.
The index for the ‘Health’ division increased by 0.3 per cent for the period under review. The movement was mainly a result of a 0.3 per cent increase in the index for the sub-division ‘Medicines and Health Products’, and the sub-division ‘Outpatient Care Services’ moving upwards by 0.1 per cent. The point-to-point inflation rate was 4.1 per cent for the review period.
The index for the ‘Transport’ division rose by 0.9 per cent for April 2022. This upward movement was impacted mainly by higher costs for fuels and lubricants locally. The point-to-point inflation rate was 15.0 per cent.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.9 per cent. The sub-division ‘Newspapers, Books and Stationery’ was the main contributor to this movement with a 1.1 per cent increase due to higher prices for newspaper and stationery. The point-to-point inflation rate was 6.7 per cent.
The index for the ‘Restaurants and Accommodation Services’ division increased by 0.1 per cent for April 2022. This upward movement was mainly attributed to an increase in the index for the sub-division ‘Restaurants, cafes and the like’. The point-to-point inflation rate was 20.4 per cent.
The index for the ‘Furnishings, Household Equipment, and Routine Household Maintenance’ division increased by 4.0 per cent in April 2022. This upward movement was mainly influenced by a 5.4 per cent rise in the index for the sub-division ‘Goods and Services for Routine Household Maintenance’ directly linked to a 28.5 percent increase in minimum wages as of April 1, 2022. Additionally, there was a 1.3 per cent increase in the index for the sub-division ‘Household Appliances’. For this division, the point-to-point inflation rate was 10.0 per cent.
At the end of April 2022, the index for the division ‘Personal Care, Social Protection, and Miscellaneous Good and Services’ increased by 0.6 per cent. Higher prices for some personal care items contributed largely to this movement. For this division, the point-to-point inflation rate was 5.9 per cent.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+ 0.5 %)
- Alcoholic Beverages, Tobacco and Narcotics: (+1.1 %)
- Clothing and Footwear: (+ 0.4 %)
- Housing, Water, Electricity, Gas and Other Fuels: (- 3.1%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 4.0 %)
- Health: (+ 0.3 %)
- Transport: (+ 0.9 %)
- Information and Communication: (+ 0.1 %)
- Recreation, Sport and Culture: (+ 0.9 %)
- Education: (0.0 %)
- Restaurants and Accommodation Services: (+ 0.1 %)
- Insurance and Financial Services (0.0 %)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.6 %)
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