Jamaica’s inflation rate increased by 0.4% for November 2022

December 16, 2022

The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 10.3% for November 2021 to November 2022. Consequently, the inflation rate for November 2022 was 0.4%. The main driver of this growth was a 2.0% increase in the index for the division ‘Food and Non-Alcoholic Beverages’, which was primarily driven by a 6.5% increase in the group ‘Vegetables, tubers, plantains, cooking bananas and pulses’. For the review period, the other contributor to the increase in the inflation rate was the ‘Education’ division which had a 1.7% rise in its index due to increased fees for the Caribbean Secondary Examination Certificate (CSEC). The overall inflation was tempered by the decline in the ‘Housing, Water, Electricity, Gas and Other Fuels’ division. due to lower electricity rates. The ‘Transport’ division declined by 0.2%, primarily due to lower costs for petrol.

All Items saw an increase between November 2021 and November 2022 of 10.3%. This was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (14.3%), ‘Alcoholic Beverages, Tobacco and Narcotics’ (9.6%), and ‘Restaurants and Accommodation Services’ (20.2%).

The ‘Food’ group was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index. The price of items in the classes: ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (up 18.7%) which resulted in a 22.6% increase in the index for the sub-class ‘Vegetables’ contributed to this upward movement. This sub-class was mainly impacted by higher prices for tomato, carrot, cabbage, and onion.

The ‘Electricity, Gas and Other Fuels’ group was largely responsible for the increase in the index for the ‘Housing, Water, Electricity, Gas and Fuels’ division with a 11.0% increase in the group’s index due to higher electricity rates. The Office of Utilities Regulation (OUR) approved an increase in electricity rate for the Jamaica Public Service Company Limited, based on the Annual Review and Extraordinary Rate Review for 2022 resulting in higher customers’ bills for November 2022.

The index for ‘Food and Beverages Serving Services’ rose by 20.3% and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’, which rose by 20.2% 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 increased by 2.0% for November 2022. The movement resulted from increases of 2.1% and 1.0% in the index for ‘Food’ group and ‘Non-Alcoholic Beverages’ group respectively. The ‘Food’ group was influenced mainly by higher prices for items tomato, cabbage, sweet pepper and sweet potato, resulting in an increase in the classes: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (6.5%), ‘Fruits and nuts’ (2.4%), ‘Meats and other parts of slaughtered animals’ (0.5%) and ‘Ready-made foods and other food products n.e.c.’ (1.3%). The ‘Non-Alcoholic Beverages’ group recorded increases for all classes: ‘Fruit and Vegetable Juices’ (0.8%), ‘Coffee, Tea and Cocoa’ (1.2%) and ‘Water, Soft drinks, and Other non-alcoholic beverages’ (1.0%).

The point-to-point inflation rate for this division was 14.3%.

 

• The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 1.0% for November 2022. 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 with the class ‘Beer’ moving up by 1.4%. ‘Spirits and liquor’ (0.5%) and ‘Wine’ (0.7%).

The point-to-point inflation rate for this division was 9.6%.

 

• The index for the ‘Clothing and Footwear’ division increased by 0.4% for November 2022. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.3% and 0.6% respectively.

The point-to-point inflation rate for this division was 6.0%.

 

• The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division declined by 2.4% for November 2022. This movement was mainly contributed by a reduction in the rates for electricity, resulting in a 6.4% fall in the index for the group ‘Electricity, Gas and Other Fuels’. Tempering the movement of the division was a 0.2% increase in the index for the group ‘Maintenance, Repair and Security of the Dwelling’.

The point-to-point inflation rate for this division was 7.0 %.

 

• The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.5% for November 2022. All groups in this division saw an increase with the main contributors being ‘Tools and Equipment for House and Garden’ (0.7%), ‘Goods and Services for Routine Household Maintenance’ (0.5%), ‘Furniture, Furnishings and Loose Carpets’ (0.4%) and ‘Household Textiles (0.4%).

The point-to-point inflation rate was 9.8%.

 

• The index for the ‘Health’ division increased by 0.3% for November 2022. This was due primarily to the 1.0% increase each in the index for the groups ‘Out Patient Care Services’ and ‘Other Health Services’ while the index for the ‘Medicines and Health Products’ group rose by 0.2%.

The point-to-point inflation rate was 4.3%.

 

• The index for the ‘Transport’ division fell by 0.2% for November 2022. This was mainly impacted by 1.1% decline in the index for the class ‘Fuels and Lubricants for personal transport equipment’ due to the downward movement in cost of petrol.

The point-to-point inflation rate was 4.7%.

 

• The index for the ‘Recreation, Sport and Culture’ division increased by 0.3% for November 2022. This movement was impacted mainly by the 0.3% increase in the index for the group ‘Newspapers, Books and Stationery’ due to higher prices for stationery items.

For this division, the point-to-point inflation rate was 7.6%.

 

• The index for the ‘Education’ division increased by 1.7% for November 2022. This movement was mainly attributed to a 9.0% increase in the index for the group ‘Secondary Education’ as a result of increased fees for the Caribbean Secondary Examination Certificate (CSEC).

The point-to-point inflation rate was 8.8%.

 

• The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.6% for November 2022. This increase was due mainly to higher costs for some personal care products and services.

The point-to-point inflation rate was 7.9%.

 

INDIVIDUAL DIVISIONS SAW THE FOLLOWING CHANGES:

1. Food and Non-Alcoholic Beverages: (+ 2.0%)
2. Alcoholic Beverages, Tobacco and Narcotics: (+ 1.0%)
3. Clothing and Footwear: (+ 0.4%)
4. Housing, Water, Electricity, Gas and Other Fuels: (-2.4%)
5. Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.5%)
6. Health: (+ 0.3%)
7. Transport: (– 2%)
8. Information and Communication: (0.0%)
9. Recreation, Sport and Culture: (0.3%)
10. Education: (1.7%)
11. Restaurants and Accommodation Services: (0.0%)
12. Insurance and Financial Services (0.0%)
13. Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.6%)