February 16, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 8.1% for January 2023 compared to January 2022. Consequently, the inflation rate for January 2023 was 0.6%. The main drivers of this decline were a 0.9% fall in the index for the division ‘Food and Non-Alcoholic Beverages’ and a 2.4% fall in the index for ‘Housing, Water, Electricity, Gas and Other Fuels’ division. The decline in the ‘Food and Non-Alcoholic Beverages’ division was primarily driven by a 5.8% decline in the group ‘Vegetables, tubers, plantains, cooking bananas and pulses’ while the decline in the ‘Housing, Water, Electricity, Gas and Other Fuels’ division had a fall in its index due primarily to lower electricity rates. The downward movements were tempered by the 1.3% increase in the ‘Restaurants and Accommodation Services’ division attributed to increased prices for meals consumed away from home. The ‘Education’ division rose by 1.4%, primarily due to higher tuition fees for primary level private schools for the Easter term.
All Items saw an increase between January 2022 and January 2023 of 8.1%. This was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (12.7%), ‘Personal Care, Social Protection and Miscellaneous Goods and Services’ (7.7%), and ‘Restaurants and Accommodation Services’ (15.8%).
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’ (15.0%) and ‘Cereals and cereal products’ (13.3%). Higher prices for sweet potatoes, irish potatoes, yellow yam, hot pepper, cabbage, tomatoes, and onion mainly impacted the movement for the former class, while increased prices for flour, cornmeal, and rice were the main contributors to the movement in the latter class.
The ‘Personal Care’ group was largely responsible for the increase in the index for the ‘Personal Care, Social Protection and Miscellaneous Goods and Services’ division with an 8.8% increase in the group’s index due to higher prices for items such as sanitary napkins, diapers, lotions, wigs and paper towel.
The index for ‘Food and Beverages Serving Services’ rose by 16.0% and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’. This increase was due to higher prices for meals consumed away from home at dine-in and fast-food restaurants.
MAJOR CPI DIVISION MOVEMENTS
- The index for the ‘Food and Non-Alcoholic Beverages’ division fell by 0.9% for January 2023. The movement resulted from a decline of 1.0% and an increase of 0.7% in the index for ‘Food’ group and ‘Non-Alcoholic Beverages’ group respectively. The ‘Food’ group was influenced mainly by lower prices for items in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (-5.8%). However, increases were recorded in other classes within the group, namely: ‘Milk, other dairy products and eggs‘ (1.1%), ‘Oils and Fats’ (0.5%) and ‘Fish and Seafood’ (0.5%). The ‘Non-Alcoholic Beverages’ group recorded increases for the classes: ‘Fruit and Vegetable Juices’ (0.7%), ‘Water, Soft drinks, and Other non-alcoholic beverages’ (0.8%) and ‘Coffee, Tea and Cocoa’ (0.6%).
The point-to-point inflation rate for this division was 12.7%.
- The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.9% for January 2023. This upward movement resulted mainly from the 1.2% increase in the index for the group ‘Alcoholic Beverages’. All classes within the group recorded increases in their index.
The point-to-point inflation rate for this division was 10.5%.
- The index for the ‘Clothing and Footwear’ division increased by 0.4% for January 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.4% each.
The point-to-point inflation rate for this division was 6.2%.
- The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division fell by 2.4% for January 2023. This movement was mainly contributed by a decline in the rates for water and sewage, resulting in a 2.0% fall in the index for the group ‘Water Supply and Miscellaneous Services Relating to the Dwelling’. Additionally, decreases in electricity rates resulted in a 6.0% fall in the group ‘Electricity, Gas and Other Fuels’.
The point-to-point inflation rate for this division was 1.9 %.
- The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.4% for January 2023. This was due mainly to increases in the ‘Goods and Services for Routine Household Maintenance’ (0.4%) and ‘Household Textiles (0.4%) groups. The increase was mainly as a result of higher costs for some household cleaning products, while for the latter, increased prices for sheet sets was the main contributing factor.
The point-to-point inflation rate was 9.5%.
- The index for the ‘Health’ division increased by 0.4% for January 2023. This was due primarily to increases in the index for the groups ‘Out Patient Care Services’ (1.1%) and ‘Medicines and Health Products’ group rose by 0.4%.
The point-to-point inflation rate was 4.3%.
- The index for the ‘Transport’ division fell by 0.1% for January 2023. This was mainly impacted by 0.7% decline in the index for the class ‘Fuels and Lubricants for personal transport equipment’ due to the continued downward movement in cost of petrol.
The point-to-point inflation rate was 3.0%.
- The index for the ‘Recreation, Sport and Culture’ division increased by 0.4% for January 2023. This movement was impacted mainly by the 0.5% increase in the index for the group ‘Newspapers, Books and Stationery’ due to higher prices for newspaper and stationery items.
The point-to-point inflation rate was 7.2%.
- The index for the ‘Education’ division increased by 1.4%. This movement was attributable to higher tuition fees for private schools at the primary education level for the Easter term.
The point-to point inflation rate was 8.8%.
- The index for the ‘Restaurants and Accommodation Services’ division increased by 1.3% for January 2023. The class ‘Fast Food Restaurants’ was the main contributing factor to the increase due to a rise in costs for meals consumed away from home.
The point-to-point inflation rate was 15.8%.
- The index for the ‘Insurance and Financial Services’ division increased by 0.3%. This was due to increased cost for motor vehicle insurance.
The point-to-point inflation rate was 0.3%.
- The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.4% for January 2023. This increase was due mainly to higher costs for some personal care products and services as toilet tissue, paper towel, bath soap, deodorant and toothpaste.
The point-to-point inflation rate was 7.7%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (-0.9%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.9%)
- Clothing and Footwear: (+ 0.4%)
- Housing, Water, Electricity, Gas and Other Fuels: (-2.4%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.4%)
- Health: (+ 0.4%)
- Transport: (- 0.1%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.4%)
- Education: (+1.4%)
- Restaurants and Accommodation Services: (+ 1.3%)
- Insurance and Financial Services (+0.3%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.4%)
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