May 17, 2024
The Statistical Institute of Jamaica (STATIN) reported that for April 2024, the point-to-point inflation rate was +5.3%; 0.3 percentage points lower than the prior point-to-point inflation rate. However, for the month of April 2024, the inflation rate was -0.7%, the fourth consecutive monthly decline.
The main driver of the monthly decrease (0.7%) was a 2.3% decline in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division owing to lower electricity, water, and sewage rates. A 0.6% decline in the ‘Food and Non-Alcoholic Beverages’ division also contributed to the fall in the inflation rate, primarily influenced by the index for the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class falling by 3.7%. Additionally, the index for the ‘Transport’ division fell by 0.6 per cent reflecting the decline in ‘Passenger Transport Services’.
The upward movement in All Items (5.3%) between April 2023 and April 2024 was mainly impacted by a lower rate of increase in the following division: ‘Food and Non-Alcoholic Beverages’ (3.5%), ‘Transport’ (9.5%) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (5.0%).
The main contributor to the growth in the index for the ‘Food and Non-Alcoholic Beverages’ division was the 3.3% increase in the ‘Food’ group, which was influenced by increases in the classes: ‘Fruit and Nut’ (14.1%), ‘Cereal and Cereal products’ (4.4%), owing to higher prices for products such as watermelons & pineapples and cornflakes, biscuits and other pastries. However, these increases were offset by a (3.1%) decline in the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’.
The main factor impacting the index for the ‘Transport’ division was a 13.0% rise in the ‘Passenger Transport Services’ group, which was influenced primarily by an increase of 19.0% in route taxi and hackney carriage fares that took effect on October 15, 2023.
The ‘Housing, Water, Electricity, Gas and Other Fuels’ division was largely impacted by a 7.1% rise in the index for the group ‘Electricity, Gas and Other Fuels’, as a result of higher electricity rates.
MAJOR CPI DIVISION MOVEMENTS
The index for ‘Food and Non-Alcoholic Beverages’ fell by 0.6% in April 2024. The ‘Food’ group index declined by 0.7%, mainly due to a 3.7% drop in the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ category, with lower prices for items like carrots, tomatoes, and potatoes. Additionally, prices decreased for ‘Ready-made food and other food products n.e.c’ by 1.1% and ‘Fruits and nuts’ by 0.6%. However, a 0.5% rise in the ‘Cereals and cereal products’ index, driven by higher rice prices, partially offset the decline in the ‘Food’ group. Meanwhile, the ‘Non-Alcoholic Beverages’ group index rose by 0.4%, with increases across all categories: ‘Water, Soft drinks and Other non-alcoholic beverages’ by 0.3%, ‘Fruit and vegetable juices’ by 0.4%, and ‘Coffee, Tea, Cocoa’ by 0.3%.
The point-to-point inflation rate for this division was 3.5%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 0.2% for April 2024. The upward movement was influenced primarily by a 0.3% rise in the index for the ‘Alcoholic Beverages’ group, owing to higher prices for beer, spirits, liquor and wine.
The point-to-point inflation rate for this division was 4.3%.
The index for the ‘Clothing and Footwear’ division increased by 0.2% for April 2024. The ‘Clothing’ and ‘Footwear’ groups each grew by 0.2%.
The point-to-point inflation rate for this division was 3.4%.
The index for ‘Housing, Water, Electricity, Gas and Other Fuels’ fell by 2.3% in April 2024. This decline was primarily driven by a 6.1% drop in the ‘Electricity, Gas and Other Fuels’ group, influenced by lower electricity rates. Additionally, the index for ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ decreased by 1.3% due to reduced water and sewage rates.
The point-to-point inflation rate for this division was 5.0%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.2% for April 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.
The point-to-point inflation rate was 9.4%.
The index for the ‘Health’ division increased by 0.5% for April 2024. This was largely due to an increase in the index for the ‘Medicines and Health Products’ group (0.5%). Additionally, the ‘Outpatient Care Services’ index increased (0.8%) as higher fees were charged by some practitioners.
The point-to-point inflation rate was 4.3%.
The index for the ‘Transport’ division decreased by 0.6% for April 2024. This was mainly impacted by a 1.4% decline in the index for the ‘Passenger transport by road’ due to a decrease in the adult bus fare charged by the JUTC in the Greater Kingston Metropolitan Area (GKMA), effective April 1, 2024. This decline was, however, tempered by a 1.0% increase in the class ‘Fuels and lubricants for personal transport equipment’ due to higher petrol prices.
The point-to-point inflation rate was 9.5%.
The index for ‘Recreation, Sport and Culture’ increased by 0.1% in April 2024. This was mainly due to a 0.2% increase in both ‘Garden Products and Pets’ and ‘Newspapers, Books and Stationery’ groups.
The point-to-point inflation rate was 5.0%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division increased by 0.4% for April 2024. This was mainly influenced by the ‘Personal Care’ group increasing 0.4 %, largely due to higher prices for some personal care products and services.
The point-to-point inflation rate was 4.0%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (-0.6%)
- Alcoholic Beverages, Tobacco and Narcotics: (+0.2%)
- Clothing and Footwear: (+0.2%)
- Housing, Water, Electricity, Gas and Other Fuels: (-2.3%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+0.2%)
- Health: (+0.5%)
- Transport: (-0.6%)
- Information and Communication: (0.0%)
- Recreation, Sport, and Culture: (+0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (0.0%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+0.4%)
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