August 19, 2022
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased from 121.8 in June 2022 to 122.7 in July 2022, Consequently the inflation rate for July 2022 was 0.7%. The biggest factor contributing to this increase was the division’s index for ‘Food and Non-Alcoholic Beverages,’ which increased by 1.4%. For the review period, all classes in this division increased, with ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (3%), ‘Cereals and cereal products’ (1.7%),‘Meat and other parts of slaughtered land animals’ (0.8%) and ‘Fish and Seafood’ (0.7%). The index for ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.3% mainly because of increased water and sewage rates. The ‘Transport’ division increased by 0.4%, primarily due to higher petrol prices and increasing toll rates for the East-West leg of Highway 2000. The ‘Personal Care, Social Protection and Miscellaneous Goods and Services’ division saw increase of 0.8%, primarily due to higher prices for personal care products and services.
All Items saw an increase between July 2021 and July 2022 of 10.2%. This was mostly related to increases in the index for the divisions ’Food and Non-Alcoholic Beverages’ (12.6%), ‘Transport’ (15.2%), and ‘Restaurants and Accommodation Services’ (19.1%).
The price of items in the classes ‘Cereals and cereal products’ (up 15%) and ‘Meat and other parts of slaughtered land animals’ (up 19%) contributed most to the increase in the ‘Food and Non-Alcoholic Beverages’ index. The class ‘Cereals and cereal products’ was most strongly impacted by increased prices for flour, rice, and bread while the index for the class ‘Meat and other parts of slain land animals’ was significantly influenced by higher costs for chicken, turkey neck and other meat products.
The ‘Transport’ division was primarily affected by higher costs for ‘Passenger transport services,’ which rose by 12.7% because of a 12.8% increase in ‘Passenger transport by road’ index due to approx. 15% increase in bus, route taxi, and hackney carriage fares in August 2021, and ‘Operation of personal transport equipment’, which increased by 26.1% as a result of 33.9% increase in the ‘Fuel & lubricants for personal transport equipment,’ index due to higher fuel costs.
Over the review period, the index for the ‘Restaurants and Accommodation Services’ division increased mostly as a result of higher prices for meals consumed at ‘Restaurants, Cafes, and the Like’ class.
Major CPI Division Movements
- The index for the ‘Food and Non-Alcoholic Beverages’ division, increased by 1.4% for July 2022. The movement resulted from increases in both the index for ‘Food’ group, which was influenced mainly by higher prices for items within the classes ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (3%), ‘Cereals and cereal products’ (1.7%),‘Meat and other parts of slaughtered land animals’ (0.8%) and ‘Fish and Seafood’ (0.7%) and the increase in the index for ‘Non-Alcoholic Beverages’ group, which was influenced mainly by higher prices for items within the class ‘Coffee, Tea and Cocoa’ up by 1.9%. The point-to-point inflation rate for this division was 12.6%.
- The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.7%. This upward movement resulted mainly from the 0.8% increase in the index for the group ‘Alcoholic Beverages’ with the class “Spirits and liquors’ having the highest increase of 1.6%. The point-to-point inflation rate for this division was 8.7%.
- The index for the ‘Clothing and Footwear’ division increased by 0.5% for July 2022. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.6% and 0.4% respectively. The point-to-point inflation rate for this division was 5.3%.
- The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.3% for July 2022. This movement was mainly contributed by the 2.1% increase in the index for the group ‘Water Supply and Miscellaneous Services Relating to the Dwelling’, which was influenced by increase in water and sewage. A 0.7 % rise was realized in the index for the group ‘Maintenance, Repair and Security of the Dwelling’. The point-to-point inflation rate for this division was 4.9 %.
- The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.5% for July 2022. All groups in this division saw an increase with the main contributors being ‘Household Appliances’ and ‘Household Textiles’ each increasing by 0.6%. The other groups recording increases were: ‘Goods and Services for Routine Household Maintenance’ (0.5%) and ‘Furniture Furnishings and Loose Carpets’ (0.5%) and ‘Tools and Equipment for House and Garden’ (0.2%). The point-to-point inflation rate was 10.2%.
- The index for the ‘Health’ division increased by 0.4% for July 2022. This was due primarily to the 0.4% increase in the index for the group ‘Medicines and Health Products’ influenced by increased prices for some prescription drugs. The index for the ‘Out Patient Care Services’ group rose by 0.5%. The point-to-point inflation rate was 4.2%.
- The index for the ‘Transport’ division increased by 0.4% for July 2022. This was mainly impacted by higher petrol prices and increasing toll rates for the East-West leg of Highway 2000. The point-to-point inflation rate was 15.2%.
- The index for the ‘Recreation, Sport and Culture’ division increased of 0.3% for July 2022. This movement was impacted mainly by the 0.4% increase for the group ‘Newspapers, Books and Stationery’ due to increased prices for books and stationery items. For this division, the point-to-point inflation rate was 7.8%.
- The index for the ‘Restaurants and Accommodation Services’ division increased by 0.3% for July 2022. This movement was mainly impacted by an increase in the index for the class ‘Restaurants, Cafes and the Like’. The point-to-point inflation rate was 19.1%.
- The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.8% for July 2022. This was due primarily to increased prices for some personal care products. The point-to-point inflation rate was 7.3%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+ 1.4%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.7%)
- Clothing and Footwear: (+ 0.5%)
- Housing, Water, Electricity, Gas and Other Fuels: (+ 0.3%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.5%)
- Health: (+ 0.4 %)
- Transport: (+ 0.4 %)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.3%)
- Education: (0.0 %)
- Restaurants and Accommodation Services: (+ 0.4%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.8%)
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.