November 17, 2022
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 9.9% for October 2021 to October 2022. Consequently, the inflation rate for October 2022 was 1.5%. The main driver of this growth was a 3.4% increase in the index for the division ‘Housing, Water, Electricity, Gas, and Other Fuels’, which was primarily driven by an 8.8% increase in the group ‘Electricity, Gas, and Other Fuels’. The increase in this group’s index was largely attributed to the Office of Utilities Regulation (OUR) approving an increase in electricity rate for the Jamaica Public Service Company Limited, which was reflected in customers’ bills in October 2022. For the review period, the other contributor to the increase in the inflation rate was the ‘Food and Non-Alcoholic Beverages’ division 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’ (7.1%). The ‘Transport’ division declined by 0.3%, primarily due to lower costs for petrol.
All Items saw an increase between October 2021 and October 2022 of 9.9%. This was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (10.1%), ‘Housing, Water, Electricity, Gas and Fuels’ (12.7%), and ‘Restaurants and Accommodation Services’ (20.5%).
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 16%) and ‘Cereal and cereal products’ (up 16%) 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 products.
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 27.7% 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, which was reflected in customers’ bills in October 2022. This was based on the Annual Review and Extraordinary Rate Review for 2022.
The index for ‘Food and Beverages Serving Services’ rose by 20.6% and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’, which rose by 20.5% for the review period.
The point-to-point inflation rate was 9.9%, while that for the fiscal year-to-date was 5.8 per cent.
Major CPI Division Movements
- The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 2.0% for October 2022. The movement resulted from increases of 2.1% 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’ (7.1%), ‘Cereals and cereal products’ (0.4%),‘Meat and other parts of slaughtered land animals’ (0.5%), ‘Fruits and nuts’ (1.2%) and ‘Sugar, confectionery and desserts’ (2.7%) The ‘Non-Alcoholic Beverages’ group recorded increases for all classes: ‘Fruit and Vegetable Juices’ (1.4%), and ‘Water, Soft drinks, and Other non-alcoholic beverages’ (1.1%).
The point-to-point inflation rate for this division was 10.1%.
- The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.8% for October 2022. This upward movement resulted mainly from the 1.1% 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 1.2%. ‘Spirits and liquor’ (0.7%) and ‘Wine’ (0.6%).
The point-to-point inflation rate for this division was 9.6%.
- The index for the ‘Clothing and Footwear’ division increased by 0.5% for October 2022. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.6% and 0.2% respectively.
The point-to-point inflation rate for this division was 6.1%.
- The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 3.4% for October 2022. This movement was mainly contributed by the 8.8% increase in the index for the group ‘Electricity, Gas and Other Fuels’, which was influenced by The Office of Utilities Regulation (OUR) approving an increase in electricity rate for the Jamaica Public Service Company Limited, which was reflected in customers’ bills in October 2022. Also influencing the movement of the division was a 1.2% increase in the index for the group ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ due to higher rates for water and sewage. The other group registering an increase was ‘Maintenance, Repair and Security of the Dwelling’, which rose by 0.2%
The point-to-point inflation rate for this division was 12.7 %.
- The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.4% for October 2022. All groups in this division saw an increase with the main contributors being ‘Household Appliances’ (0.6%), ‘Household Textiles’ (0.6%), ‘Furniture, Furnishings and Loose Carpets’ (0.4%) and ‘Goods and Services for Routine Household Maintenance’ (0.3%).
The point-to-point inflation rate was 10.0%.
- The index for the ‘Health’ division increased by 0.3% for October 2022. This was due primarily to the 0.3% increase in the index for the group ‘Medicines and Health Products’ while the index for the ‘Out Patient Care Services’ group rose by 0.7% to increases in fees charged by some general practitioners.
The point-to-point inflation rate was 4.3%.
- The index for the ‘Transport’ division fell by 0.3% for October 2022. This was mainly impacted by 1.7% decline in the index for the class ‘Fuels and Lubricants for personal transport equipment’ due to the downward movement in cost of fuels.
The point-to-point inflation rate was 5.5%.
- The index for the ‘Recreation, Sport and Culture’ division increased by 0.1% for October 2022. This movement was impacted mainly by the 0.2% increase in the index for the group ‘Newspapers, Books and Stationery’ and ‘Garden Products and Pets’ (0.1%).
For this division, the point-to-point inflation rate was 7.8%.
- The index for the ‘Restaurants and Accommodation Services’ division increased by 1.1% for October 2022. Prices continued to trend upward for some meals consumed away from home, which resulted in a 1.1% increase in the index for the group ‘Food and Beverage Serving Services’.
The point-to-point inflation rate was 20.5%.
- The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.5% for October 2022. This increase was due mainly to higher costs for some personal care products.
The point-to-point inflation rate was 7.8%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+ 2.0%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.8%)
- Clothing and Footwear: (+ 0.5%)
- Housing, Water, Electricity, Gas and Other Fuels: (+ 3.4%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.4%)
- Health: (+ 0.3%)
- Transport: (– 0.3%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (+ 1.1%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.5%)
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