January 18, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 9.4% for December 2022 compared to December 2021. Consequently, the inflation rate for December 2022 was 0.0%. The main driver of this decline was a 1.0% fall in the index for the division ‘Food and Non-Alcoholic Beverages’, which was primarily driven by a 6.3% decline in the group ‘Vegetables, tubers, plantains, cooking bananas and pulses’. For the review period, the other contributor to the fall in the inflation rate was the ‘Transport’ division which had a 0.9% fall in its index due to lower costs for petrol. The downward movements were tempered by the 3.4% increase in the ‘Restaurants and Accommodation Services’ division attributed to increased prices for meals consumed away from home. The ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 0.7%, primarily due to increases in the rates for electricity, water, and sewage.
All Items saw an increase between December 2021 and December 2022 of 9.4%. This was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (13.8%), ‘Alcoholic Beverages, Tobacco and Narcotics’ (9.9%), and ‘Restaurants and Accommodation Services’ (23.9%).
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’ (17.8%) and ‘Cereals and cereal products’ (14.0%). Higher prices for tomato, carrot, and cabbage mainly impacted the movement for the former class, while increased prices for flour, bread, and rice were the main contributors to the movement in the latter class.
The ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ group was largely responsible for the increase in the index for the ‘Housing, Water, Electricity, Gas and Fuels’ division with a 14.0% increase in the group’s index due to higher rates for water and sewage charged to customers over the period.
The index for ‘Food and Beverages Serving Services’ rose by 24.2% and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’, which rose by 23.9% for the review period. This increase was due to higher prices for meals consumed away from home.
MAJOR CPI DIVISION MOVEMENTS
- The index for the ‘Food and Non-Alcoholic Beverages’ division fell by 1.0% for December 2022. The movement resulted from a decline of 1.1% and an increase of 1.0% in the index for ‘Food’ group and ‘Non-Alcoholic Beverages’ group respectively. The ‘Food’ group was influenced mainly by lower prices for items carrot, Irish potato, lettuce, pak-choi and tomato, resulting in a fall in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (-6.3%). However, increases were recorded in other classes within the group, namely: ‘Cereals and cereal products’ (0.4%), ‘Meats and other parts of slaughtered land animals’ (0.4%) and ‘Fish and Seafood’ (0.4%). The ‘Non-Alcoholic Beverages’ group recorded increases for the classes: ‘Fruit and Vegetable Juices’ (1.1%) and ‘Water, Soft drinks, and Other non-alcoholic beverages’ (0.9%).
The point-to-point inflation rate for this division was 13.8%.
- The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 1.1% for December 2022. This upward movement resulted mainly from the 1.5% increase in the index for the group ‘Alcoholic Beverages’. All classes within the group recorded increases in their index with the class ‘Beer’ having the strongest impact moving up by 1.7%.
The point-to-point inflation rate for this division was 9.9%.
- The index for the ‘Clothing and Footwear’ division increased by 0.6% for December 2022. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.6% and 0.5% respectively.
The point-to-point inflation rate for this division was 6.3%.
- The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 0.7% for December 2022. This movement was mainly contributed by increases in water and sewage rates, resulting in a 3.3% rise in the index for the group ‘Water Supply and Miscellaneous Services Relating to the Dwelling’. Additionally, increases in electricity rates resulted in a 0.8% rise in the group ‘Electricity, Gas and Other Fuels’.
The point-to-point inflation rate for this division was 2.8 %.
- The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.5% for December 2022. This was due mainly to increases in the ‘Goods and Services for Routine Household Maintenance’ (0.5%) and ‘Household Textiles (0.7%) groups.
The point-to-point inflation rate was 9.8%.
- The index for the ‘Health’ division increased by 0.2% for December 2022. This was due primarily to increases in the index for the groups ‘Out Patient Care Services’ (0.3%) and ‘Medicines and Health Products’ group rose by 0.2% as there were increased fees for some general practitioners and higher costs for some dental service.
The point-to-point inflation rate was 4.2%.
- The index for the ‘Transport’ division fell by 0.9% for December 2022. This was mainly impacted by 3.7% decline in the index for the class ‘Operation of Personal Transport Equipment’ due to the continued downward movement in cost of petrol.
The point-to-point inflation rate was 3.7%.
- The index for the ‘Recreation, Sport and Culture’ division increased by 0.1% for December 2022. This movement was impacted mainly by the 0.1% increase in the index for the group ‘Newspapers, Books and Stationery’ due to higher prices for stationery items.
The point-to-point inflation rate was 7.1%.
- The index for the ‘Restaurants and Accommodation Services’ division increased by 3.4% for December 2022. This movement was mainly attributed to a 3.4% increase in the index for the group ‘Food and Beverage Serving Services’ as a result of the rise in costs for meals consumed away from home. The index for the ‘Accommodation Services’ group also recorded an increase, moving up by 0.7 per cent.
The point-to-point inflation rate was 23.9%.
- The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.3% for December 2022. This increase was due mainly to higher costs for some personal care products and services.
The point-to-point inflation rate was 7.6%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (-1.0%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 1.1%)
- Clothing and Footwear: (+ 0.6%)
- Housing, Water, Electricity, Gas and Other Fuels: (+ 0.7%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.5%)
- Health: (+ 0.2%)
- Transport: (-0.9%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (+ 3.4%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.3%)
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