January 18, 2024
The Statistical Institute of Jamaica (STATIN) reported that for December 2023, the point-to-point inflation rate was +6.9%; 0.6 percentage points higher than the prior point-to-point inflation rate. However, for the month of December 2023, the inflation rate was +0.5%.
The main driver of the monthly increase (0.5%) was a 2.5% rise in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division, owing to higher rent, electricity, water, and sewage rates. Another contributor to the increase was a 0.3% rise in the index for the ‘Food and Non-Alcoholic Beverages’ division due mainly to increases in the classes: ‘Ready-made food and other food products n.e.c’ (4.2%) and ‘Fruit and nuts’ (1.8%). The monthly increase was tempered by a 0.4% fall in the index for the ‘Transport’ division, owing to lower fuel prices.
The upward movement in All Items (6.9%) between December 2022 and December 2023 was mostly related to increases in the divisions: ‘Food and Non-Alcoholic Beverages’ (8.7%), ‘Transport’ (10.6%) and ‘Restaurants and Accommodation Services’ (9.4%).
All classes within the ‘Food and Non-Alcoholic Beverages’ division grew with the main contributor being the ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ class (17.5%), owing to higher prices for agricultural produce such as yam, sweet potato, Irish potato, tomato, carrot, and cabbage.
The main factor impacting the index for the ‘Transport’ division was a 16.5% rise in the ‘Passenger Transport Services’ group following a 16.6% increase in the index for ‘Passenger transport by road’, which grew because of the approximated 19.0% increase in route taxi and hackney carriage fares that took effect on October 15, 2023.
The index for the ‘Restaurants and Accommodation Services’ division went up because consumers paid more for meals consumed away from home, which resulted in a 9.4% increase in the index for the ‘Food and Beverage Serving Services’ group.
MAJOR CPI DIVISION MOVEMENTS
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 0.3% for December 2023. The movement resulted from increases in both the ‘Food’ group index (0.3%) and the ‘Non-Alcoholic Beverages’ group index (0.8%). The ‘Food’ group index was influenced mainly by increases in the classes: ‘Ready-made food and other food products n.e.c’ (4.2%), ‘Fruit and nuts’ (1.8%), and ‘Meat and other parts of slaughtered land animals’ (0.3%) tempered by a 1.1% fall in the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class, due to lower prices for some agricultural produce such as yam, sweet potato, carrot and lettuce. The ‘Non-Alcoholic Beverages’ group was mainly influenced by the class: ‘Fruit and vegetable juices’ (1.3%), followed by Water, Soft drinks, and Other non-alcoholic beverages’ (0.6%), and ‘Coffee, Tea, Cocoa’ (0.3%).
The point-to-point inflation rate for this division was 8.7%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 0.3% for December 2023. The upward movement was influenced by increases in the index for the groups: ‘Alcoholic Beverages’ (0.2%) and ‘Tobacco’ (0.3%).
The point-to-point inflation rate for this division was 5.8%.
The index for the ‘Clothing and Footwear’ division increased by 0.3% for December 2023. The index for both groups in the division increased. The ‘Clothing’ group index went up by 0.3% while the index for the ‘Footwear’ group rose by 0.1%.
The point-to-point inflation rate for this division was 4.2%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 2.5% for December 2023. This was mostly due to the increased cost of rent: actual rent (3.3%) and imputed rent (4.0%). Higher electricity rates also contributed to the division’s increase, which resulted in a 1.2% rise in the index of the ‘Electricity, Gas and Other Fuels’ group. The index for the ‘Water Supply and Miscellaneous Services Related to the Dwelling’ group rose by 1.7%, resulting from higher rates for water and sewage.
The point-to-point inflation rate for this division was 1.2%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.3% for December 2023. This was mainly influenced by a 0.2% rise in the index for the ‘Goods and Services for Routine Household Maintenance’ group, owing to higher prices for some household cleaning products. The index for the other groups increased with notable increases for the groups: Furniture, Furnishings and Loose Carpets (0.8%), ‘Household Appliances’ (0.4%), and ‘Household Textiles’ (0.4%).
The point-to-point inflation rate was 10.5%.
The index for the ‘Health’ division increased by 0.2% for December 2023. This was primarily due to the index of the ‘Medicines and Health Products’ group, which increased by 0.2% because of higher prices for some over-the-counter and prescription drugs.
The point-to-point inflation rate was 4.4%.
The index for the ‘Transport’ division declined by 0.4% for December 2023. This was mainly impacted by a 2.0% fall in the index for the ‘Operation of Personal Transport Equipment’ group due to reduced petrol prices.
The point-to-point inflation rate was 10.6%.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.1% for December 2023. This movement was mainly impacted by higher prices for some books and stationery items in the group ‘Newspapers, Books and Stationery’ (0.1%).
The point-to-point inflation rate was 4.2%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division grew by 0.2% for December 2023. This growth was due mainly to increases in prices for some personal care products and services.
The point-to-point inflation rate was 4.4%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+0.3%)
- Alcoholic Beverages, Tobacco and Narcotics: (+0.3%)
- Clothing and Footwear: (+0.3%)
- Housing, Water, Electricity, Gas and Other Fuels: (+2.5%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+0.3%)
- Health: (+0.2%)
- Transport: (-0.4%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (0.0%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+0.2%)
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