March 20, 2024
The Statistical Institute of Jamaica (STATIN) reported that for February 2024, the point-to-point inflation rate was +6.2%; 1.2 percentage points lower than the prior point-to-point inflation rate. However, for the month of February 2024, the inflation rate was -0.6%.
The main drivers of the monthly decrease (0.6%) were a 1.1% decline in the index for the ‘Food and Non-Alcoholic Beverages’ division and a 1.6% drop in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division. The downward movement in the ‘Food and Non-Alcoholic Beverages’ division was largely attributed to a 6.3% fall in the index for the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class following lower prices for some agricultural produce, while the decline in the ‘Housing, Water, Electricity, Gas and Other Fuels’ division was due to a 4.7% downturn in the index for the ‘Electricity Gas and Other Fuels’ group, following lower electricity rates. The monthly decrease was tempered by a 0.3% rise in the index for the ‘Transport’ division owing primarily to higher petrol prices.
The upward movement in All Items (6.2%) between February 2023 and February 2024 was mostly related to increases in the divisions: ‘Food and Non-Alcoholic Beverages’ (7.7%), ‘Transport’ (9.6%) and ‘Restaurants and Accommodation Services’ (8.2%).
The main contributor to the growth in the index for the ‘Food and Non-Alcoholic Beverages’ division was the ‘Food’ group, which was influenced by the ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ class (15.7%), owing to higher prices for agricultural produce such as yam, Irish potato, tomato, cabbage, and carrot.
The main factor impacting the index for the ‘Transport’ division was a 14.5% rise in the ‘Passenger Transport Services’ group, which was influenced primarily by an increase of 14.6% in the index for the ‘Passenger transport by road’ class, which grew because of the 19.0% increase in route taxi and hackney carriage fares that took effect on October 15, 2023.
The index for the ‘Restaurants and Accommodation Services’ division went up because of an increase in the ‘Food and Beverage Serving Services’ group (8.2%), due mainly to higher costs for meals away from home.
MAJOR CPI DIVISION MOVEMENTS
The index for the ‘Food and Non-Alcoholic Beverages’ division decreased by 1.1% for February 2024. The movement resulted mainly from a 1.2% drop in the ‘Food’ group index, while the ‘Non-Alcoholic Beverages’ group index increased by 0.6%. The ‘Food’ group index was influenced mainly by decreases in the classes: ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (6.3%), and ‘Ready-made food and other food products n.e.c’ (2.7%) due to lower prices for agricultural produce such as carrot, escallion, cabbage, tomato, sweet potato, and yam. The downward movement in the division’s index was tempered by increases in the index for other classes, with a notable increase of 3.3% in the ‘Fruit and nuts’ class, following higher prices for ripe banana, melon, and pineapple. All classes within the ‘Non-Alcoholic Beverages’ group increased: Water, Soft drinks, and Other non-alcoholic beverages’ (0.7%), ‘Fruit and vegetable juices’ (0.6%), and ‘Coffee, Tea, Cocoa’ (0.6%).
The point-to-point inflation rate for this division was 7.7%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 0.3% for February 2024. The upward movement was influenced primarily by a 0.4% rise in the index for the ‘Alcoholic Beverages’ group as increases were registered in the classes: ‘Spirits and liquors’ (0.4%), ‘Beer’ (0.4%) and ‘Wine’ (0.1%).
The point-to-point inflation rate for this division was 4.6%.
The index for the ‘Clothing and Footwear’ division increased by 0.2% for February 2024. Increases were registered for both groups: ‘Clothing’ (0.3%) and ‘Footwear’ (0.2%).
The point-to-point inflation rate for this division was 4.0%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division decreased by 1.6% for February 2024. This was mostly due to lower electricity rates driving the index for the ‘Electricity, Gas and Other Fuels’ group down by 4.7%. The downward movement in the division’s index was tempered by increases in the index for the groups: ‘Maintenance, Repair and Security of the Dwelling’ (1.4%) – due to increased wages for carpenters, electricians, masons, painters and plumbers, and ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ (0.3%) – due to higher water and sewage rates.
The point-to-point inflation rate for this division was 0.2%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.2% for February 2024. This was mainly influenced by a 0.2% rise in the index for the ‘Goods and Services for Routine Household Maintenance’ group, owing to higher prices for some household cleaning products. Notable increases were also registered for the groups: ‘Household Textiles’ (0.3%), ‘Furniture, Furnishings and Loose Carpets’ (0.2%), and ‘Tools and Equipment for House and Garden’ (0.4%).
The point-to-point inflation rate was 10.0%.
The index for the ‘Health’ division increased by 0.6% for February 2024. This was largely due to an increase in the index for the ‘Medicines and Health Products’ group (0.6%), owing to increased prices for prescription medicines such as antibiotics and asthma inhalers. Additionally, the ‘Outpatient Care Services’ group index grew by 1.5% due to increased fees charged by some general practitioners.
The point-to-point inflation rate was 4.2%.
The index for the ‘Transport’ division increased by 0.3% for February 2024. This was mainly impacted by a 1.1% rise in the index for the ‘Operation of Personal Transport Equipment’ group due to higher petrol prices.
The point-to-point inflation rate was 9.6%.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.1% for February 2024. This movement was mainly impacted by a 0.1% increase in the index for each group: ‘Newspapers, Books and Stationery’ and ‘Garden Products and Pets’.
The point-to-point inflation rate was 5.3%.
The index for the ‘Restaurants and Accommodation Services’ division increased by 0.1% for February 2024. The upward movement was due mainly to increases in the index for the groups: ‘Food and Beverage Serving Services’ (0.1%) and ‘Accommodation Services’ (0.6%).
The point-to-point inflation rate was 8.2%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division increased by 0.3% for February 2024. This was largely due to a 0.4% rise in the index for the ‘Personal Care’ group, following higher prices for services at hairdressing salons and personal grooming establishments.
The point-to-point inflation rate was 4.1%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (-1.1%)
- Alcoholic Beverages, Tobacco and Narcotics: (+0.3%)
- Clothing and Footwear: (+0.2%)
- Housing, Water, Electricity, Gas and Other Fuels: (-1.6%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+0.2%)
- Health: (+0.6%)
- Transport: (+0.3%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (+0.1%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+0.3%)
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