March 16, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 7.8% for February 2023 compared to February 2022. Notably, the was the smallest point-to-point increase since the period ending December 2021. However, for the month of February 2023, the inflation rate was 0.5%. The main driver of this increase was a 2.7% increase in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’. The rise in the division was due primarily to higher electricity rates resulting in a 7.4% increase in the index ‘Electricity, Gas and Other Fuels’. Additionally, there was a negligible decline of 2.4% in the ‘Food and Non-Alcoholic Beverages’ division due to continued fall in the prices of the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class.
All Items saw an increase between February 2022 and February 2023 of 7.8%. Notably, this was the smallest point-to-point increase since the period ending December 2021. The upward movement was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (11.3%), ‘Restaurants and Accommodation Services’ (15.6%) and ‘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: ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (11.2%) and ‘Cereals and cereal products’ (12.9%). Higher prices for potatoes, yam, sweet pepper, cabbage, and snacks mainly impacted the movement for the former class, while increased prices for flour, cornmeal, cereals, bread and rice were the main contributors to the movement in the latter class.
The ‘Imputed Rent’ and ‘Electricity, Gas and Other Fuels’ groups were largely responsible for the increase in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division. ‘Imputed Rent’ was up 2.8% while ‘Electricity, Gas and Other Fuels’ rose by 3.9%.
The index for ‘Food and Beverages Serving Services’ rose by 15.8% 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 due to a rise in the cost of items at dine-in and fast-food restaurants.
MAJOR CPI DIVISION MOVEMENTS
- The index for the ‘Food and Non-Alcoholic Beverages’ division fell by 0.0% for February 2023. The movement resulted from a decline of 0.1% and an increase of 1.2% in the index for ‘Food’ group and ‘Non-Alcoholic Beverages’ group respectively. The ‘Food’ group was influenced mainly by lower prices for items in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (-2.4%) due to increased supplies. However, increases were recorded in other classes within the group, namely: ‘Fruits and nuts’ (1.8%), ‘Cereals and cereal products’ (0.4%), ‘Meat and other parts of slaughtered land animals’ (0.4%) and ‘Fish and Seafood’ (0.4%). The ‘Non-Alcoholic Beverages’ group recorded increases for the classes: ‘Fruit and Vegetable Juices’ (0.5%), ‘Water, Soft drinks, and Other non-alcoholic beverages’ (0.7%) and ‘Coffee, Tea and Cocoa’ (2.9%).
The point-to-point inflation rate for this division was 11.3%.
- The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.7% for February 2023. This upward movement resulted mainly from the 0.9% 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 ‘Beer’ (0.9%).
The point-to-point inflation rate for this division was 10.5%.
- The index for the ‘Clothing and Footwear’ division increased by 0.2% for February 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.2% each.
The point-to-point inflation rate for this division was 6.1%.
- The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 2.7% for February 2023. This movement was mainly contributed by higher electricity rates resulting in a 7.4% rise in the group ‘Electricity, Gas and Other Fuels’. Additionally, the index of the group ‘Maintenance and Security of the Dwelling’ increased by 2.3% due to a 12.5% increase in the labour rates for carpenters, electricians, masons, painters and plumbers.
The point-to-point inflation rate for this division was 3.7%.
- The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.5% for February 2023. This was due mainly to increases in the ‘Goods and Services for Routine Household Maintenance’ (0.6%). The increase was mainly as a result of higher costs for some household cleaning products such as laundry soaps, detergents and all-purpose cleaners. All other groups in the division registered increases, with ‘Furniture, Furnishings and Loose Carpets’ rising by (0.6%), ‘Tools and Equipment for House and Garden’ (0.6%) and ‘Household Textiles’ (0.4%).
The point-to-point inflation rate was 9.4%.
- The index for the ‘Health’ division increased by 0.8% for February 2023. This was due primarily to a 0.9% increase in the index for the group ‘Medicines and Health Products’ resulting from higher prices for some over the counter and prescription drugs. Higher fees charged by some general practitioners resulted in a 0.3% increase in the index for the ‘Out-Patient Care Services’ group.
The point-to-point inflation rate was 4.7%.
- The index for the ‘Transport’ division rose by 0.1% for February 2023. This was mainly impacted by the increase in costs for some fuels and related items in the class ‘Fuels and Lubricants for personal transport equipment’.
The point-to-point inflation rate was 2.2%.
- The index for the ‘Information and Communication’ division declined by 2.7% for February 2023. This movement was attributable to a fall in the cost of some mobile communication services.
The point-to point inflation rate was -2.5%.
- The index for the ‘Recreation, Sport and Culture’ division increased by 0.2% for February 2023. This movement was impacted mainly by the 0.2% increase in the index for the group ‘Newspapers, Books and Stationery’ due to higher prices for newspaper and some stationery items.
The point-to-point inflation rate was 7.0%.
- The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.6% for February 2023. This increase was due mainly to a 0.6% increase in the index for ‘Personal Care’, as prices continued to increase for items within this group.
The point-to-point inflation rate was 7.5%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (0.0%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.7%)
- Clothing and Footwear: (+ 0.2%)
- Housing, Water, Electricity, Gas and Other Fuels: (+2.7%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.5%)
- Health: (+ 0.8%)
- Transport: (+0.1%)
- Information and Communication: (-2.7%)
- Recreation, Sport and Culture: (+ 0.2%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (0.0%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.6%)
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