Jamaica’s inflation rate declined by 0.4% for April 2023

May 16, 2023

The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 5.8% for April 2023 compared to April 2022. However, for the month of April 2023, the inflation rate was -0.4%. The main driver of the decline was a 4.2% fall in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’. The fall in the division was due primarily to a reduction in the electricity rates, resulting in a 12.5% decrease in the index ‘Electricity, Gas and Other Fuels’. However, the overall rate of inflation was tempered by a 0.6% increase in the index for the ‘Food and Non-Alcoholic Beverages’ division as prices continued to trend upward for some agricultural produce.

All Items saw an increase between April 2022 and April 2023 of 5.8%. The upward movement was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (10.3%), ‘Restaurants and Accommodation Services’ (16.8%). These upward movements were however tempered by a fall in the index for the group ‘Housing, Water, Electricity, Gas and Other Fuels’ (-3.7%).

The ‘Food’ group was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index. Increases were recorded for items in the classes: ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (14.7%), ‘Meat and other parts of slaughtered land animals’ (8.4%) and ‘Cereals and cereal products’ (11.1%). Higher prices for crops, such as yam, sweet potato, and cabbage impacted the former class. Higher costs for chicken meat contributed to the rise in the index for the class ‘Meat and other parts of slaughtered land animals’. For the ‘Cereals and cereal products’ class, increased prices for flour and bread were the key contributors. The index for ‘Food and Beverages Serving Services’ rose by 17.0% and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’. This increase was due to higher costs for patties and meals at fast food restaurants and cook shops.

These upward movements were, however, tempered by a 13.4% decline in the index for the group ‘Electricity, Gas and Other Fuels.’ This mainly resulted from lower electricity rates for residential customers. The decline was the main factor contributing to the fall in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’ for the period.

MAJOR CPI DIVISION MOVEMENTS

  • The index for the ‘Food and Non-Alcoholic Beverages’ division rose by 0.6% for April 2023. The movement resulted from an increase of 0.6% and 1.1% in the index for ‘Food’ and ‘Non-Alcoholic Beverages’ groups respectively. The ‘Food’ group was influenced mainly by higher prices for items in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (2.4%). Increases were also recorded in other classes within the group, namely: ‘Milk, other dairy products, and eggs’ (0.5%), ‘Fish and Seafood’ (0.4%), ‘Cereals and cereal products’ (0.2%), and ‘Meat and other parts of slaughtered land animals’ (0.3%). The ‘Non-Alcoholic Beverages’ group recorded increases for the classes: ‘Fruit and Vegetable Juices’ (1.0%), ‘Water, Soft drinks, and Other non-alcoholic beverages’ (1.1%) and ‘Coffee, Tea and Cocoa’ (1.0%).

          The point-to-point inflation rate for this division was 10.3%.

  • The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.3% for April 2023. This upward movement was mainly from the 0.4% increase in the index for the group ‘Alcoholic Beverages’. All classes within the group recorded increases in their index with the strongest movement recorded being for the class ‘Beer’ (0.4%).

The point-to-point inflation rate for this division was 9.4%.

  • The index for the ‘Clothing and Footwear’ division increased by 0.5% for April 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.5% and 0.4% respectively.

The point-to-point inflation rate for this division was 6.0%.

  • The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division fell by 4.2% for April 2023. This movement was mainly contributed by lower electricity rates resulting in a 12.5% fall in the group ‘Electricity, Gas and Other Fuels’. Additionally, increased rates for water and sewage resulted in a 2.6% rise in the index for the class ‘Water Supplies and Miscellaneous Services related to the Dwelling’.

The point-to-point inflation rate for this division was -3.1%.

  • The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.5% for April 2023. This was due mainly to a 0.4% increase in the group ‘Goods and Services for Routine Household Maintenance’ resulting from increased prices for some household cleaning products.

The point-to-point inflation rate was 5.5%.

  • The index for the ‘Health’ division increased by 0.4% for April 2023. This was due primarily to a 0.4% increase in the index for the group ‘Medicines and Health Products’ resulting from higher prices for some over-the-counter painkillers and cough and flu medicines.

The point-to-point inflation rate was 4.9%.

  • The index for the ‘Transport’ division declined by 0.1% for April 2023. This was mainly impacted by lower petrol prices.

The point-to-point inflation rate was 0.4%.

  • The index for the ‘Information and Communication’ division increased by 0.1% for April 2023. There were increased prices for items within the group ‘Information and Communication Equipment’ resulting in the index moving upwards by 0.4%.

The point-to-point inflation rate was 2.5%.

  • The index for the ‘Recreation, Sport and Culture’ division increased by 0.1% for April 2023. This movement was impacted mainly by higher prices for some stationery items and drawing supplies, as well as for food and medicine for pets.

The point-to-point inflation rate was 5.9%.

  • The index for the division ‘Restaurants and Accommodation Services’ increased by 0.1% for April 2023. This was mainly impacted by an increase of 0.1% for the ‘Food and Beverages Serving Services’ group.

The point-to-point inflation rate was 16.8%.

  • The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.4% for April 2023. This increase was due mainly to higher prices for some personal care products.

The point-to-point inflation rate was 7.1%.

Individual divisions saw the following changes:

  1. Food and Non-Alcoholic Beverages: (+0.6%)
  2. Alcoholic Beverages, Tobacco and Narcotics: (+ 0.3%)
  3. Clothing and Footwear: (+ 0.5%)
  4. Housing, Water, Electricity, Gas and Other Fuels: (-4.2%)
  5. Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.5%)
  6. Health: (+ 0.4%)
  7. Transport: (-0.1%)
  8. Information and Communication: (+0.1%)
  9. Recreation, Sport and Culture: (+ 0.1%)
  10. Education: (0.0%)
  11. Restaurants and Accommodation Services: (+ 0.1%)
  12. Insurance and Financial Services (0.0%)
  13. Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.4%)

 

 

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2023-05-16T14:58:46-05:00