October 20, 2022
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased from 123.8 in August 2022 to 125.5 in September 2022. Consequently, the inflation rate for September 2022 was 1.4%. The main driver of this growth was a 4.1% increase in the index for the division ‘Housing, Water, Electricity, Gas, and Other Fuels’, which was primarily driven by a 9.2% increase in the group ‘Electricity, Gas, and Other Fuels’. The end of the Jamaican government’s 20% subsidy on power bills for consumers using 200 kilowatts or less per hour was a major factor in the increase in this group’s index. For the review period, other contributors to the increase in the inflation rate were ‘Food and Non-Alcoholic Beverages’ and ‘Education’ divisions tempered by the decline in the ‘Transport’ division. The main class in the ‘Food and Non-Alcoholic Beverages’ division that recorded an increase was ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (3.5%). The index for the ‘Education’ division increased by 5.3% mainly because of higher tuition charges at the primary-level of private schools. The ‘Transport’ division decreased by 0.3%, primarily due to lower petrol costs.
All Items saw an increase between September 2021 and September 2022 of 9.3%. This was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (10.5%), ‘Housing, Water, Electricity, Gas and Fuels’ (8.5%), and ‘Restaurants and Accommodation Services’ (19.4%).
The ‘Food’ group was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index. The price of items in the classes: ‘Meat and other parts of slaughtered land animals’ (up 17.7%) and ‘Cereal and cereal products’ (up 16.4%) were key contributors to this upward movement. The class ‘Cereal and cereal products’ was still being affected by rising costs for bread, rice, and flour, while the ‘Meat and other parts of slaughtered land animals’ was influenced by price increases for chicken, turkey neck, and other meat items.
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 14.9% increase in the group’s index. The discontinuation of the Government of Jamaica’s 20% subsidy on electricity bills for consumers who used 200 kilowatt per hours (kwh) or less was a factor in this group’s increase. The subsidy was in place for four months, expiring in August 2022.
Over the review period, the index for the ‘Restaurants and Accommodation Services’ division increased mostly because of higher prices at ‘Food and Beverages Serving Services’ establishments for the review period.
Major CPI Division Movements
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 1.1% for September 2022. The movement resulted from increases of 1.1% and 0.8% 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’ (3.5%), ‘Oils and Fats’ (1.9%), ‘Milk, other dairy products and eggs’ (0.8%) ‘Cereals and cereal products’ (0.7%), and ‘Fish and Seafood’ (0.6%). The ‘Non-Alcoholic Beverages’ group recorded increases for all classes: ‘Fruit and Vegetable Juices’ (0.9%), ‘Water, Soft drinks, and Other non-alcoholic beverages’ (0.8%), and ‘Coffee, Tea, Cocoa’ (0.8%).
The point-to-point inflation rate for this division was 10.5%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.5% for September 2022. This upward movement resulted mainly from the 0.7% increase in the index for the group ‘Alcoholic Beverages’ as a result of higher prices for items in the classes: ‘Spirits and liquors’ (1%), ‘Wine’ (0.8%), and ‘Beer’ (0.7%).
The point-to-point inflation rate for this division was 9.5%.
The index for the ‘Clothing and Footwear’ division increased by 0.8% for September 2022. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.7% and 0.9% respectively. The primary contributing factor in the index for “Clothing” was the rising cost of school uniform materials, while the index for “Footwear” was impacted by rising costs for children’s shoes.
The point-to-point inflation rate for this division was 5.8%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 4.1% for September 2022. This movement was mainly contributed by the 9.2% increase in the index for the group ‘Electricity, Gas and Other Fuels’, which was influenced by the discontinuation of the Government of Jamaica’s subsidy of 20% on electricity bills for customers who used 200 kwh or less. Other contributors of this upward movement were the 0.5% rise in the index for the group ‘Maintenance, Repair and Security of the Dwelling’, which was influenced by higher prices for paint and the 0.6% rise realized in the group ‘Water Supply and Miscellaneous Services Relating to the Dwelling’, which was influenced by an increase in water and sewage rates.
The point-to-point inflation rate for this division was 8.5 %.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.4% for September 2022. All groups in this division saw an increase with the main contributors being ‘Household Textiles’ (0.6%), ‘Tools and Equipment for House and Garden’ (0.4%), and ‘Goods and Services for Routine Household Maintenance’ (0.4%).
The point-to-point inflation rate was 10.2%.
The index for the ‘Health’ division increased by 0.3% for September 2022. This was due primarily to the 0.3% 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 0.7% because of increased fees for some general practitioners.
The point-to-point inflation rate was 4.3%.
The index for the ‘Transport’ division fell by 0.3% for September 2022. This was mainly impacted by 2% decline in the index for the class ‘Fuels and Lubricants for personal transport equipment’ due to lower prices for 87 and 90 unleaded gasoline.
The point-to-point inflation rate was 6.1%.
The index for the ‘Recreation, Sport and Culture’ division increased by 1.7% for September 2022. This movement was impacted mainly by the 2.1% increase in the index for the group ‘Newspapers, Books and Stationery’ due to increased prices for school books and stationery items.
For this division, the point-to-point inflation rate was 8.6%.
The index for the ‘Education’ division increased by 5.3% for September 2022. This movement was impacted mainly by increases in tuition fees for private schools at the primary education level for the new school year.
For this division, the point-to-point inflation rate was 7.7%.
The index for the ‘Restaurants and Accommodation Services’ division increased by 0.1% for September 2022. This movement was mainly impacted by increased prices for some meals consumed away from home.
The point-to-point inflation rate was 19.4%.
The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.5% for September 2022. This was due primarily to increased prices for some personal care products like toilet tissue, paper towel, lotion and toothpaste.
The point-to-point inflation rate was 7.6%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+ 1.1%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.5%)
- Clothing and Footwear: (+ 0.8%)
- Housing, Water, Electricity, Gas and Other Fuels: (+ 4.1%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.4%)
- Health: (+ 0.3%)
- Transport: (– 0.3%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 1.7%)
- Education: (+ 5.3%)
- Restaurants and Accommodation Services: (+ 0.1%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.5%)
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