Jamaica’s inflation rate increased by 2.4% in August 2024

September 17, 2024

The Statistical Institute of Jamaica (STATIN) reported that for August 2024, the point-to-point inflation rate was +6.5%; 1.4 percentage points higher than the 5.1% recorded for July 2023 to July 2024. Compared to July 2024, The All-Jamaica Consumer Price Index (CPI) for August 2024 increased by 2.4%.

The main driver of the monthly increase (2.4%) was a 4.1% rise in the index for the ‘Food and Non-Alcoholic Beverages’ division, primarily influenced by higher prices for most agricultural produce. As a result, the index for the class ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ surged by 15.5%, which was due to reduced supplies following the impact of Hurricane Beryl. Additionally, the index for the ‘Housing, Water, Electricity, Gas, and Other Fuels’ division increased by 3.7%, largely driven by a 10.6% rise in the group ‘Electricity, Gas, and Other Fuels,’ stemming from higher electricity rates. Offsetting these increases was a 0.2% decline in the ‘Transport’ division, primarily due to lower petrol prices.

The movement in the point-to-point inflation rate to 6.5% as at August 2024, was primarily influenced by increases in the following divisions: ‘Food and Non-Alcoholic Beverages’ (6.3%), ‘Transport’ (10.3%) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (8.0%).

The rise in the index for the ‘Food and Non-Alcoholic Beverages’ division was driven by a 6.3% increase in the ‘Food’ group. Key contributors to this increase were higher prices for ripe bananas, papaya, pineapples, watermelon, and dried coconut, which significantly affected the ‘Fruits and Nuts’ class (16.6%). Additionally, the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class (10.8%) saw an upward trend due to increased prices for items such as sweet pepper, tomato, cucumber, yam, and green banana.

The ‘Transport’ division experienced a notable increase, primarily due to a 15.3% rise in the index for ‘Passenger Transport Services.’ This was largely the result of a significant 19% hike in fares for route and hackney carriage taxis implemented on October 15, 2023, as well as the Jamaica Urban Transit Company (JUTC) fare restructuring that took effect on May 13, 2024.

In the ‘Housing, Water, Electricity, Gas and Other Fuels’ division, the index rise was mainly due to a 14.3% increase in the ‘Electricity, Gas and Other Fuels’ group and a 4.8% increase for the ‘Imputed Rentals for Housing’ group. These increases were chiefly driven by higher electricity rates and rental prices.

MAJOR CPI DIVISION MOVEMENTS

The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 4.1%, marking the largest monthly rise since the introduction of the new Consumer Price Index (CPI) series in April 2020. The ‘Food’ group index went up by 4.3%, while the ‘Non-Alcoholic Beverages’ group saw a 0.4% increase. The main factor behind the growth in the ‘Food’ group was a 15.5% surge in the ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ class, driven by higher agricultural produce prices due to supply shortages caused by Hurricane Beryl’s impact. Other classes within the group also saw increases, including ‘Fruits and nuts’ (6.2%) and ‘Ready-made food and other food products’ (2.1%). The rise in the ‘Non-Alcoholic Beverages’ group was primarily due to a 0.5% increase in the index for ‘Fruit and vegetable juices’ and a 0.3% rise in the ‘Water, Soft drinks, and Other non-alcoholic beverages’ class.

The point-to-point inflation rate for this division was 6.3%.

The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.6%, driven mainly by a 0.7% increase in the ‘Alcoholic Beverages’ group. All classes within the group experienced increases, with ‘Wine’ seeing the largest rise at 1.3%, followed by ‘Spirits and liquors’ at 1.0%, and ‘Beer’ at 0.5%.

The point-to-point inflation rate for this division was 7.0%.

The index for the ‘Clothing and Footwear’ division increased by 0.4%. This was primarily driven by a 0.5% rise in the ‘Clothing’ group, influenced by higher prices for clothing materials and school uniforms. Additionally, the ‘Footwear’ group saw a 0.3% increase, mainly due to higher prices for children’s shoe.

The point-to-point inflation rate for this division was 3.4%.

The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 3.7%, marking its largest monthly rise since September 2022. This was primarily driven by higher electricity rates, resulting in a 10.6% increase in the ‘Electricity, Gas, and Other Fuels’ group. Additionally, the ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ group saw a 0.8% rise due to increased water and sewage rates.

The point-to-point inflation rate for this division was 8.0%.

The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division rose by 0.2%. All groups within the division saw increases, including ‘Furniture, Furnishings, and Loose Carpets’ (0.1%), ‘Household Textiles’ (0.2%), ‘Household Appliances’ (0.1%), and ‘Goods and Services for Routine Household Maintenance’  (0.2%).

The point-to-point inflation rate was 5.3%.

The index for the ‘Health’ rose by 0.3%. A similar 0.3% increase was seen in the ‘Medicines and Health Products’ group, mainly driven by higher prices for certain prescription medications and over-the-counter cough syrup. Additionally, the ‘Outpatient Care Services’ group experienced a 0.3% rise due to higher fees for some general practitioners.

The point-to-point inflation rate was 4.3%.

The index for the ‘Transport’ division fell by 0.2%, primarily due to a 1.7% decrease in the ‘Fuels and Lubricants for Personal Transport Equipment’ class, driven by lower petrol prices. However, this overall decline was moderated by a 3.8% increase in the ‘Other Services in Respect of Personal Transport Equipment’ class, caused by higher toll rates on the North-South leg of Highway 2000.

The point-to-point inflation rate was 10.3%.

The index for ‘Recreation, Sport and Culture’ division increased by 1.1%. This was influenced primarily by higher prices for school books and stationery items.

The point-to-point inflation rate was 4.7%.

The index for ‘Restaurants and Accommodation Services’ division increased by 1.1%. This was influenced primarily by higher prices meals consumed away from home.

The point-to-point inflation rate was 4.8%.

The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division rose by 0.2%. This was primarily driven by a 0.2% increase in the ‘Personal Care’ group, due to higher prices for certain personal care products and services. Additionally, the ‘Social Protection’ group saw a 0.7% rise, mainly attributed to higher daycare fees.

The point-to-point inflation rate was 3.5%.

Individual divisions saw the following changes:

  1. Food and Non-Alcoholic Beverages: (+4.1%)
  2. Alcoholic Beverages, Tobacco and Narcotics: (+0.6%)
  3. Clothing and Footwear: (+0.4%)
  4. Housing, Water, Electricity, Gas and Other Fuels: (+3.7%)
  5. Furnishing, Household Equipment and Routine Household Maintenance: (+0.2%)
  6. Health: (+0.3%)
  7. Transport: (-0.2%)
  8. Information and Communication: (0.0%)
  9. Recreation, Sport, and Culture: (+1.1%)
  10. Education: (0.0%)
  11. Restaurants and Accommodation Services: (+1.1%)
  12. Insurance and Financial Services (0.0%)
  13. Personal Care, Social Protection and Miscellaneous Goods and Services: (+0.2%)

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2024-09-17T16:12:28-05:00