June 16, 2022
According to STATIN (The Statistical Institute of Jamaica), the Consumer Price Index for May 2022 was 120.9, up 0.3% from April 2022 which closed at 120.4. The upward movement was primarily attributable to a 7.7% increase in the index for the ‘Restaurants and Accommodation Services’ division due to higher prices for items within the class ‘Restaurants, cafes and the like’. Also contributing to the rise is the index of the heaviest weighted division ‘Food and Non-Alcoholic Beverage.’ Notably, the ‘Food’ index was mainly impacted by the ‘Cereals and cereal products’ class which had the largest impact with a 2.4% rise in its index due to increases in the price for flour, bread, and rice. While the index for other classes, “Meat and other parts of slaughtered land animals’ (1.5%), ‘Fish and Seafood’ (1.4%) and ‘Milk, other dairy products and eggs’ (1.1%),” registered increases. The growth was tempering by a 2.9% decline in ‘Vegetables, tubers, plantains, cooking bananas and pulses’. This was due to lower prices for some agricultural produce, especially vegetables, as a result of an improvement in local supplies.
The inflation rate was also impacted by a 0.8% increase in the index for ‘Transport’ division due to a rise in fuel prices. The Consumer Price Index was however tempered by a 3.0% fall in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division. This was mainly impacted by the group ‘Electricity, Gas and Other Fuels’, which recorded a decrease of 9.0% in its index.
The point-to-point inflation rate was 10.9% and the fiscal year-to date inflation rate was 0.3% on May 31, 2022. Additionally, The Greater Kingston Metropolitan Area experienced general growth of 0.3%, the Rural Areas experienced general increased of 0.3% while ‘Other Urban Centers’ saw general growth of 0.5%.
Year over year increase in the CPI for the All Jamaica, All Items increased by 10.9%. The main contributing divisions to this period’s upward movement were: ‘Food and Non-Alcoholic Beverages’ (13.9%), ‘Restaurants and Accommodation Services’ (29.4%), and ‘Transport’ (15.1%). “The increase in the index for the division, ‘Food and Non-Alcoholic Beverages’ was mainly attributed to increases in the index for the classes, ‘Meat and other parts of slaughtered land animals’ (20.2%) and ‘Cereals and cereal products’ (15.8%). Higher prices for chicken and other meat products mainly impacted the movement in the former class. The upward movement for the class ‘Cereals and cereal products’ was primarily due to higher costs for flour and rice,” as per STATIN.
Additionally, the rise in the division ‘Restaurants and Accommodation Services’, was due mainly to higher prices for items within the class ‘Restaurants, cafes and the like’. Also, the climb in the index for the ‘Transport’ division resulted mainly from the classes, ‘Passenger transport by road’ which moved up by 12.8% and ‘Fuel & lubricants for personal transport equipment’ which increased by 33.5%. Higher prices for all petrol products, including gasoline and diesel fuel, and the increase in bus, route taxi, and hackney carriage fares in August 2021, were the main contributors.
Major CPI Division Movements
The index for the ‘Food and Non-Alcoholic Beverages’ division rose by 0.4% for May 2022. The 0.4% increase in the index for the group ‘Food’ was the main contributing factor, while the ‘Non-Alcoholic Beverages’ group went up by 1.1%. Higher prices for flour, bread, and rice resulted in a 2.4% increase in the index ‘Cereals and cereal products’. Notably, the increase in the index for the class ‘Meat and other parts of slaughtered land animals’ (1.5%) was impacted by an increase in prices for chicken products, while the increase in the index for the ‘Fish and Seafood’ (1.4%) class, was due mainly to higher prices for sliced fish and snapper. The upward movement in the index for the class ‘Milk, other dairy products and eggs’ (1.1%) was the result of an increase in the price of milk. However, the movement in the index of the ‘Food’ group was tempered by the 2.9% decline in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’. This decline resulted from lower prices for agricultural produce such as tomato, cabbage, irish potato and yam. For the ‘Non-Alcoholic Beverages’ group, the main contributor to the increase was the class ‘Water, Soft drinks and Other non-alcoholic beverages’, which went up by 1.2%. The point-to-point inflation rate was 13.9% for this division.
The index for the ‘Alcoholic Beverages, Tobacco & Narcotics’ division increased by 1.0% during the month of May. The ‘Alcoholic Beverages’ sub-division had a 1.1% increase in its index as the price for ‘Beer’ continued to move upwards. Additionally, ‘Tobacco’ group saw an increase of 0.8% due to higher cigarette prices increases. The point-to-point inflation rate was 0.8% at May 31, 2022, compared to May 31, 2021.
The index for the ‘Clothing and Footwear’ division increased by 0.5% for the review period. The main contributor to this movement was the ‘Clothing’ group with a 0.5% uptick in its index. The index for the ‘Footwear’ group moved upwards by 0.2%. The point-to-point inflation rate for this division was 5.2%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division declined by 3.0% the only decline among all the divisions for May 2022. The downwards movement was influenced mainly by the 9.0% decrease in the index for the group ‘Electricity, Gas and Other Fuels’, because of “the Government of Jamaica care payment of 20% on electricity bills for customers who use 200 kilowatts per hour or less, for the period under review,” as per STATIN. However, there was a 3.0% increase in the index for the group ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ as a result of higher water and sewage rates. The index for the group ‘Maintenance, Repair and Security of the Dwelling’ also increased by 1.7% due mainly to higher paint prices. For this division, the point-to-point inflation rate was 3.9%.
The index for the ‘Health’ division increased by 0.4% due primarily to the increase in the index for the sub-division, ‘Medicines and Health Products’ by 0.3%. The increase was due to higher prices in over the counter and prescription drugs. The point-to-point inflation rate was 4.2%. The index for the ‘Transport’ division increased by 0.8% for the period under review. This was mainly impacted by the rise in petrol prices. The point-to-point inflation rate was 15.1%.
‘Recreation, Sport and Culture’ index had an increase of 0.7% in its index for May 2022. This movement was impacted mainly by the 7.7% increase for the group ‘Cultural Services’. The index for ‘Other Recreational Goods’ increased by 1.5%, ‘Garden Products and Pets’ moved up by 0.8%, while ‘Newspapers, Books and Stationery’ increased by 0.4%. For this division, the point-to-point inflation rate was 7.4%.
The index for the ‘Restaurants and Accommodation Services’ division increased by 7.7% for May 2022. This increase was influenced by increases for the groups ‘Food and Beverage Serving Services’ and ‘Accommodation Services’, which moved up by 7.8% and 1.4% respectively. For this division, the point-to-point inflation rate was 29.4%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.5%. The main contributors to this increase were the groups, ‘Goods and Services for Routine Household Maintenance’ which increased by 0.5% . There were increases in the index for the other groups within the division: ‘Furniture, Furnishing and Loose Carpets’ (0.7%), ‘Household Textiles’ (0.3%), ‘Tools and Equipment for House and Garden’ (0.3%) and ‘Household Appliances’ (0.1%). The point-to-point inflation rate was 10%.
The index for the ‘Education’ division increased by 0.3% for May 2022. This increase resulted mainly from the rise in cost of tuition fees at the primary level. For this division, the point-to-point inflation rate was 4.8%. The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.8% for the period under review. This was due primarily to 1% and 0.6% increase in the index for some ‘Personal Care’ and ‘Other Personal Effects’. For this division, the point-to-point inflation rate was 6.3%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+ 0.4 %)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 1.0 %)
- Clothing and Footwear: (+ 0.5 %)
- Housing, Water, Electricity, Gas and Other Fuels: (- 3.0 %)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.5 %)
- Health: (+ 0.4 %)
- Transport: (+ 0.8 %)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.7 %)
- Education: (+ 0.3 %)
- Restaurants and Accommodation Services: (+ 7.7 %)
- Insurance and Financial Services (0.0 %)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.8 %)
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