September 16, 2022
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased from 122.7 in July 2022 to 123.8 in August 2022. Consequently, the inflation rate for August 2022 was 0.9%. 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, classes in this division that recorded increases were ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (5.1%), ‘Cereals and cereal products’ (1.5%), and ‘Meat and other parts of slaughtered land animals’ (0.9%). The index for ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.4% mainly because of higher electricity rates. The ‘Recreation, Sport and Culture’ division increased by 0.8%, primarily due to increased costs for textbooks for the review period.
All Items saw an increase between August 2021 and August 2022 of 10.2%. This was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (12.6%), ‘Transport’ (15.0%), and ‘Restaurants and Accommodation Services’ (19.3%).
The ‘Food’ group was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index with a 12.7% increase in the index. The price of items in the classes ‘Cereals and cereal products’ (up 16.2%) and ‘Meat and other parts of slaughtered land animals’ (up 18.6%) were key contributors to this upward movement. The class ‘Cereals and cereal products’ was impacted by increased prices for flour, rice, and bread while the index for the class ‘Meat and other parts of slain land animals’ was 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 an approx. 15% increase in bus, route taxi, and hackney carriage fares by the Government in August 2021, and ‘Operation of personal transport equipment’, which increased by 25.4% as a result of 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 1.7% for August 2022. The movement resulted from increases of 1.8% and 1.1% in the index for ‘Food’ group and ‘Non-Alcoholic Beverages’ group respectively. The ‘Food’ group was influenced mainly by higher prices for items within the classes: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (5.1%), ‘Cereals and cereal products’ (1.5%), ‘Meat and other parts of slaughtered land animals’ (0.9%),‘Milk, other dairy products and eggs’ (1.1%) and ‘Oils and Fats’ (2.0%); the ‘Fish and Seafood’ class declined by 0.4% due to lower prices for salted fish. The ‘Non-Alcoholic Beverages’ group was influenced mainly by higher prices for items within the classes: ‘Water, Soft drinks, and Other non-alcoholic beverages’, which had the greatest impact with a 1.3% increase in its index, followed by ‘Coffee, Tea, Cocoa’ with 8%.
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% for August 2022. This upward movement resulted mainly from the 0.9% increase in the index for the group ‘Alcoholic Beverages’ as a result of higher prices for ‘Spirits and liquors’.
The point-to-point inflation rate for this division was 9.2%.
The index for the ‘Clothing and Footwear’ division increased by 0.7% for August 2022. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.8% and 0.5% respectively.
The point-to-point inflation rate for this division was 5.4%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.4% for August 2022. This movement was mainly contributed by the 1.3% increase in the index for the group ‘Electricity, Gas and Other Fuels’, which was influenced by increased rates for electricity. A 0.3 % rise was realized in the index for the group ‘Maintenance, Repair and Security of the Dwelling’, while ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ saw a decline of 0.4%, which was influenced by a decline in water and sewage rates.
The point-to-point inflation rate for this division was 5.1 %.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.4% for August 2022. All groups in this division saw an increase with the main contributors being ‘Goods and Services for Routine Household Maintenance’ (0.5%), which was influenced by higher prices for some household products, ‘Household Appliances’ (0.5%) and ‘Tools and Equipment for House and Garden’ (0.4%).
The point-to-point inflation rate was 10.3%.
The index for the ‘Health’ division increased by 0.4% for August 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 over the counter and prescription drugs. The index for the ‘Outpatient Care Services’ group rose by 0.7% as a result of increased fees for some general practitioners and dental services.
The point-to-point inflation rate was 4.3%.
The index for the ‘Transport’ division increased by 0.2% for August 2022. This was mainly impacted by higher fuel and lubricant prices and increasing toll rates for the North-South leg of Highway 2000; some fuel costs declined.
The point-to-point inflation rate was 15%.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.8% for August 2022. This movement was impacted mainly by the 1% increase in the index 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 8%.
The index for the ‘Restaurants and Accommodation Services’ division increased by 0.4% for August 2022. This movement was mainly impacted by a 0.4% increase in the index for the group ‘Food and Beverage Serving Services’. However, the index for the group ‘Accommodation Services’ declined by 2.4%.
The point-to-point inflation rate was 19.3%.
The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.7% for August 2022. This was due primarily to increased prices for some personal care products.
The point-to-point inflation rate was 7.5%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+ 1.7%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.7%)
- Clothing and Footwear: (+ 0.7%)
- Housing, Water, Electricity, Gas and Other Fuels: (+ 0.4%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.4%)
- Health: (+ 0.4%)
- Transport: (+ 0.2%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.8%)
- Education: (0.0 %)
- Restaurants and Accommodation Services: (+ 0.4%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.7%)
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