April 18, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 6.2% for March 2023 compared to March 2022. Notably, this was the smallest point-to-point movement since the period ending August 2021. However, for the month of March 2023, the inflation rate was 0.1%. The main driver of this increase was a 0.8% increase in the index for the division ‘Food and Non-Alcoholic Beverages’. The rise in the division was due primarily to lower supplies for some agricultural produce due to dry weather conditions, resulting in a 2.5% increase in the index ‘Vegetables, tubers, plantains, cooking bananas and pulses’. However, the overall rate of inflation was tempered by a 1.8% decline in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division and a 0.2% decline in that of the ‘Transport’ division. The movement in the former was due to lower electricity, water, and sewage rates, while the latter was impacted by lower petrol prices.
All Items saw an increase between March 2022 and March 2023 of 6.2%. The upward movement was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (10.1%), ‘Restaurants and Accommodation Services’ (16.9%). These upward movements were however tempered by a 1.9% fall in the index for the group ‘Housing, Water, Electricity, Gas and Other Fuels’ (3.7%).
The ‘Food’ group was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index. Increases were recorded for items in the classes: ‘Cereal and cereal products’ (12.5%), ‘Meat and other parts of slaughtered land animals’ (9.8%) and ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (8.3%). Higher prices for flour, cornmeal, bread, and rice impacted the former class. Higher prices for turkey neck, beef, chicken, and other meat products contributed to the rise in the index for the class ‘Meat and other parts of slaughtered land animals’, while for the class, ‘Vegetables, tubers, plantains, cooking bananas and pulses,’ increased prices for sweet potato, Irish potato, and yellow yam were the key contributors.
The index for ‘Food and Beverages Serving Services’ rose by 16.9% and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’. This increase was due to higher prices for meals consumed away from home at cook shops, fast food restaurants, and other dining establishments.
These upward movements were, however, tempered by a 9.2% decline in the index for the group ‘Electricity, Gas and Other Fuels.’ The decline was the main factor contributing to the fall in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’ for the period.
MAJOR CPI DIVISION MOVEMENTS
- The index for the ‘Food and Non-Alcoholic Beverages’ division rose by 0.8% for March 2023. This increase was the first for this division since November 2022 when a 2.0% increase was recorded. The movement resulted from an increase of 0.8% and 0.7% in the index for ‘Food’ and ‘Non-Alcoholic Beverages’ groups respectively. The ‘Food’ group was influenced mainly by higher prices for items in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (2.5%). Increases were also recorded in other classes within the group, namely: ‘Milk, other dairy products and eggs’ (0.6%) and ‘Meat and other parts of slaughtered land animals’ (0.5%). The ‘Non-Alcoholic Beverages’ group recorded increases for the classes: ‘Fruit and Vegetable Juices’ (0.8%), ‘Water, Soft drinks, and Other non-alcoholic beverages’ (0.4%) and ‘Coffee, Tea and Cocoa’ (1.3%).
The point-to-point inflation rate for this division was 10.1%.
- The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.4% for March 2023. This upward movement was mainly from the 0.5% increase in the index for the group ‘Alcoholic Beverages’. All classes within the group recorded increases in their index with the highest movement recorded being for the class ‘Spirits and Liquors’ (0.6%).
The point-to-point inflation rate for this division was 10.2%.
- The index for the ‘Clothing and Footwear’ division increased by 0.5% for March 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.4% and 0.6% respectively. Increased prices for ‘Garments’ was the main contributor to the increase in the index of the ‘Clothing’ group, while higher costs for ‘Shoes and other footwear’ impacted the index for the ‘Footwear’ group.
The point-to-point inflation rate for this division was 5.9%.
- The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division fell by 1.8% for March 2023. This movement was mainly contributed by lower electricity rates resulting in a 4.2% fall in the group ‘Electricity, Gas and Other Fuels’. Additionally, decreased rates for water and sewage resulted in a 2.5% fall in the index for the group ‘Water Supply. However, the index of the group ‘Maintenance and Security of the Dwelling’ increased by 0.2%.
The point-to-point inflation rate for this division was -1.9%.
- The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.4% for March 2023. This was due mainly to increases in all five groups that comprise this division. The groups ‘Furniture, Furnishings and Loose Carpets’ and ‘Household Textiles’ had the largest increase of 0.5% each, followed by ‘Goods and Services for Routine Household Maintenance’ (0.4%), ‘Household Appliances’ (0.3%) and ‘Tools and Equipment for House and Garden’ (0.2%).
The point-to-point inflation rate was 9.2%.
- The index for the ‘Health’ division increased by 0.5% for March 2023. This was due primarily to a 0.6% increase in the index for the group ‘Medicines and Health Products’ resulting from higher costs for medicines.
The point-to-point inflation rate was 4.8%.
- The index for the ‘Transport’ division declined by 0.2% for March 2023. This was mainly impacted by lower petrol prices resulting in a 1.4% decline in the class ‘Fuels and Lubricants for personal transport equipment’.
The point-to-point inflation rate was 1.4%.
- The index for the ‘Recreation, Sport and Culture’ division increased by 0.4% for March 2023. This movement was impacted mainly by higher prices for stationery items and pet food.
The point-to-point inflation rate was 6.7%.
- The index for the division ‘Restaurants and Accommodation Services’ increased by 1.1% for March 2023. Higher prices for some meals consumed away from home were the main contributing factor to this increase.
The point-to-point inflation rate was 16.9%.
- The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.2% for March 2023. This increase was due mainly to higher prices for some personal care products.
The point-to-point inflation rate was 7.3%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+0.8%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.4%)
- Clothing and Footwear: (+ 0.5%)
- Housing, Water, Electricity, Gas and Other Fuels: (-1.8%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.4%)
- Health: (+ 0.5%)
- Transport: (-0.2%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.4%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (+ 1.1%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.2%)
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