July 18, 2022
The All Jamaica Consumer Price Index (CPI) increased from 120.9 in May 2022 to 121.8 in June 2022, according to STATIN (The Statistical Institute of Jamaica). Consequently, the inflation rate for June 2022 was 0.8%. The biggest factor contributing to this increase was the division’s index for ‘Food and Non-Alcoholic Beverages,’ which increased by 1.7%. For the review period, all classes in this division increased, with ‘Oils and Fats’ (which increased by 2.5%), ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (2.2%), ‘Cereals and cereal products’ (1.9%), and ‘Meat and other parts of slaughtered land animals’ (1.8%). The index for the ‘Transport’ division increased by 0.9%, primarily due to increasing gasoline prices. The overall movement of the CPI was however tempered ‘Housing, Water, Electricity, Gas and Other Fuels’ division’s index which fell by 0.5%, which was mostly attributable to a decrease in the prices for sewage, water, and electricity.
All Items saw an increase between June 2021 and June 2022 of 10.9%. This was mostly related to increases in the index for the divisions ’Food and Non-Alcoholic Beverages’ (13.7%), ‘Transport’ (15.6%), and ‘Restaurants and Accommodation Services’ (22.4%).
The price of items in the classes ‘Cereals and cereal products’ (up 15.0%) and ‘Meat and other parts of slaughtered land animals’ (up 20.1%) contributed most to the increase in the ‘Food and Non-Alcoholic Beverages’ index (up by 13.7%). The class ‘Cereals and cereal products’ was most strongly impacted by increased prices for flour and rice, while the index for the class ‘Meat and other parts of slain land animals’ was significantly influenced by higher costs for chicken and other meat products.
The ‘Transport’ division was primarily affected by higher costs for ‘Passenger transport by road,’ which increased by 12.8% as a result of an increase in bus, route taxi, and hackney carriage fares in August 2021, and a 36.4% increase in the index for the class ‘Fuel & lubricants for personal transport equipment,’ due to higher costs for all petrol products.
Over the review period, the index for the category ‘Restaurants and Accommodation Services’ increased by 22.4%, mostly as a result of higher pricing for goods in the ‘Restaurants, Cafes, and Like’ class.
Major CPI Division Movements
The index for the division ‘Food and Non-Alcoholic Beverages’, increased by 1.7% for June 2022. This division is comprised of the ‘Food’ and the ‘Non-Alcoholic Beverages’ groups. The increase in the index for ‘Food’ group was influenced mainly by higher prices for items within the classes ‘Oils and Fats’ (2.5%), ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (2.2%), ‘Cereals and cereal products’ (1.9%), ‘Meat and other parts of slaughtered land animals’ (1.8%) and ‘Milk, other dairy products and eggs’ (1.7%). For the ‘Non-Alcoholic Beverages’ group, prices continued to trend upwards with the index for the class ‘Fruit and Vegetable Juices’ going up by 1.7%, ‘Coffee, Tea and Cocoa’ up by 1.3%, while ‘Water, Soft drinks and Other non-alcoholic beverages’ went up by 1.2%. The point-to-point inflation rate for this division was 13.7%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.9%. This upward movement resulted mainly from the 1.0% increase in the index for the group ‘Alcoholic Beverages’, as prices for spirits and liquors, wine and beers continued to rise. The index for the group ‘Tobacco’ increased by 0.7%. The point-to-point inflation rate for this division was 8.5%.
The index for the ‘Clothing and Footwear’ division increased by 0.4% for June 2022. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.4% and 0.3% respectively. The point-to-point inflation rate for this division was 5.1%.
For the third month in succession, the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division fell, with the index for June 2022 declining by 0.5%. The division’s movement was mainly influenced by the reduction in the rates for electricity, water and sewage for the review period. There was a 2.8% fall in the index for the group ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ and a 1.2% decline in the index for the group ‘Electricity, Gas and Other Fuels’. The fall in the index for this division however was moderated by a 0.7% increase in the index for the group ‘Imputed Rentals for Housing’ and a 1.0 % rise in the index for the group ‘Maintenance, Repair and Security of the Dwelling’. The point-to-point inflation rate for this division was 6.0 %.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.6%. This was due mainly to the 0.7% increase in the index for the group ‘Goods and Services for Routine Household Maintenance’ as a result of increased prices for some household non-durables, such as laundry soaps, bleach, detergents and other cleaning products. All other groups in the division registered increases in their index, notably: ‘Household Appliances’ (0.7%), ‘Tools and Equipment for House and Garden’ (0.5%) and ‘Household Textiles’ (0.4%).The point-to-point inflation rate was 10.3%.
The index for the ‘Health’ division increased by 0.3%. 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 also recorded an increase of 0.4%. The point-to-point inflation rate was 4.3%.
The index for the ‘Transport’ division increased by 0.9% for the period under review. This was mainly impacted by the rise in petrol prices. The point-to-point inflation rate was 15.6%.
The ‘Recreation, Sport and Culture’ division had an increase of 0.7% in its index for June 2022. This movement was impacted mainly by the 0.5% increase for the group ‘Newspapers, Books and Stationery’ reflecting increased prices for books and stationery items. For this division, the point-to-point inflation rate was 8.0%.
The index for the ‘Restaurants and Accommodation Services’ division increased by 0.3 %. Higher prices for some meals consumed away from home were the main contributing factors to this increase. The point-to-point inflation rate was 22.4%.
The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.9% for the period under review. This was due primarily to increased prices for some personal care products, such as toilet tissue, bath soap and toothpaste. The point-to-point inflation rate was 7.1%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+ 1.7%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.9%)
- Clothing and Footwear: (+ 0.4%)
- Housing, Water, Electricity, Gas and Other Fuels: (- 0.5%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.6%)
- Health: (+ 0.3 %)
- Transport: (+ 0.9 %)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.7%)
- Education: (+ 0.0 %)
- Restaurants and Accommodation Services: (+ 0.3%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.9%)
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