October 19, 2023
The Statistical Institute of Jamaica (STATIN) reported that for September 2023, the point-to-point inflation rate was 5.9%; 0.9 percentage points lower than the prior point-to-point inflation rate due to lower prices for some agriculture produce. However, for the month of September 2023, the inflation rate was +0.5%.
The main driver of the monthly increase (0.5%) was an 11.8% rise in the index for the ‘Education’ division owing to higher tuition fees for primary level private schools. Other contributors to the increase were the 0.7% increase in the index for the ‘Transport’ division due to increased petrol prices and the 0.1% increase in the index for the ‘Food and Non-Alcoholic Beverages’ division due to increases in the index for most classes tempered by 1.9% decrease in the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class.
The movement in All Items (5.9%) between September 2022 and September 2023 was mostly related to increases in the index for the divisions: ‘Food and Non-Alcoholic Beverages’ (9.8%), and ‘Restaurants and Accommodation Services’ (12.0). However, this was tempered by a 1.9% decline in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division.
The ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ class, which climbed by 23.4%, was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index. This follows higher prices for produce such as yam, sweet potato, carrot, tomato, and cabbage during the period. Additionally, ‘Cereals and cereal products’ increased by 4.6% due to higher prices for bread, flour, and rice, while ‘Meat and Other parts of slaughtered land animals’ increased by 4.2% due to increased costs for chicken and other meat products.
The main factor impacting the index for the ‘Restaurants and Accommodation Services’ division was higher costs for some meals consumed away from home.
The decline in ‘Housing, Water, Electricity, Gas and Other Fuels’ division was largely impacted by the 6.3% decrease in the ‘Electricity, Gas and Other Fuels’ class resulting from a fall in electricity charges.
MAJOR CPI DIVISION MOVEMENTS
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 0.1% for September 2023; the lowest inflation rate for this division since March 2023. The movement resulted from increases in both the ‘Food’ group index (0.1%) and the ‘Non-Alcoholic Beverages’ group index. The ‘Food’ group was influenced by increases in ‘Fruits and Nuts’ (3.8%), ‘Ready-made food and other food products n.e.c’ (2.2%), ‘Meat and other parts of slaughtered land animals’ (0.3%) and ‘Cereals and cereal products’ (0.3%) tempered by a 1.9% decline in the index of the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class; owing to lower prices for agricultural produce especially, yellow yam and tomato, due to increased rainfall. For the ‘Non-Alcoholic Beverages’ group, the index for the classes ‘Fruit and vegetable juices’ and ‘Coffee, Tea, Cocoa’ each increased by 0.7%, while ‘Water, Soft drinks, and Other non-alcoholic beverages’ increased by 0.4%.
The point-to-point inflation rate for this division was 9.8%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 0.7% for September 2023. The ‘Tobacco’ group index increased by 2.0% while the ‘Alcoholic Beverages’ group index rose by 0.2%, with notable increases in the index for the classes: ‘Spirits and liquors’ (0.3%), ‘Wine’ (0.2%), and ‘Beer’ (0.2%).
The point-to-point inflation rate for this division was 7.5%.
The index for the ‘Clothing and Footwear’ division increased by 0.6% for September 2023. The index for the ‘Clothing’ group increased by 0.8% due to a similar increase for the index of the classes: ‘Clothing materials’ and ‘Garments’ while the index for the ‘Footwear’ group increased by 0.2%, resulting from increases in the classes: ‘Shoes and other Footwear’ (0.2%) and ‘Cleaning repair and hire for Footwear’ (0.5%).
The point-to-point inflation rate for this division was 4.9%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.1% for September 2023. This was mostly due to higher electricity, water and sewage rates, which resulted in a 1.1% increase in the index of the ‘Water Supply and Miscellaneous Services Related to the Dwelling’ group while the ‘Electricity, Gas, and Other Fuels’ group index 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 0.3% for September 2023. Increases were registered for all groups with the largest contributor being the ‘Goods and Services for Routine Household Maintenance’ (0.3%) followed by ‘Furniture, Furnishings and Loose Carpets (0.2%) and ‘Household Appliances (0.1%).
The point-to-point inflation rate was 11.0%.
The index for the ‘Health’ division increased by 0.3% for September 2023. Notably, this is the third consecutive month this increase has been realized. The main contributor was the index for the ‘Medicines and Health Products’ group, which went up by 0.3% resulting mainly from higher prices for some over-the-counter and prescription drugs. The division was also affected by the 0.9% increase in the index of the ‘Outpatient Care Services’ group, following an increase in fees charged by some general practitioners.
The point-to-point inflation rate was 4.7%.
The index for the ‘Transport’ division increased by 0.7% for September 2023. This was mainly impacted by higher petrol prices, which resulted in a 3.5% increase in the index for the ‘Fuels and Lubricants for personal transport equipment’ class.
The point-to-point inflation rate was -0.2%.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.6% for September 2023. This movement was mainly impacted by higher prices for schoolbooks and stationery items in the group ‘Newspapers, Books and Stationery’ (0.7%).
The point-to-point inflation rate was 4.2%.
The index for the division ‘Education’ increased by 11.8% for September 2023. This was mainly impacted by higher tuition fees for private schools at the primary education level for the new school year.
The point-to-point inflation rate was 15.3%.
The index for the division ‘Restaurants and Accommodation Services’ increased by 0.1% for September 2023. This was mainly impacted by higher prices for some meals consumed away from home.
The point-to-point inflation rate was 12.0%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division increased by 0.4% for September 2023. This growth was due mainly to increases in prices for some personal care products and services.
The point-to-point inflation rate was 5.0%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+0.1%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.7%)
- Clothing and Footwear: (+ 0.6%)
- Housing, Water, Electricity, Gas and Other Fuels: (+0.1%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.3%)
- Health: (+ 0.3%)
- Transport: (+0.7%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.6%)
- Education: (+11.8%)
- Restaurants and Accommodation Services: (+0.1%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.4%)
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