July 18, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 6.3% for June 2023 compared to June 2022. However, for the month of June 2023, the inflation rate was +1.0%. The main driver of the monthly increase was a 1.3% rise in the index for the heaviest weighted division ‘Food and Non-Alcoholic Beverages’, which followed a 5.3% increase in the index for the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class due higher prices for products, namely: carrot, tomato, lettuce, yam and onions. Additionally, the ‘Restaurants and Accommodation Services’ division climbed by 4.2% due to higher prices for meals and drinks consumed away from home. The Jamaican government’s approval of a 44.4% increase in the National Minimum Wage resulted in a 6.4% increase in the index for the ‘Furnishings, Household Equipment, and Routine Household Maintenance’ division. However, the overall rate of inflation was tempered by a 0.8% decline in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division due to lower electricity, water, and sewage rates.
All Items saw an increase between June 2022 and June 2023 of 6.3%. The upward movement was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (10.3%), ‘Restaurants and Accommodation Services’ (12.8%) and ‘Furnishings, Household Equipment and Routine Household Maintenance’ (11.4%) tempered by the ‘Transport’ division, which decline by 1.6%. 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 followed rises in the index for the subclasses “Vegetables” (21.4%) and “Tuber, Plantains, and Cooking Bananas” (27.6%). The sub-class ‘Vegetables’ was mainly impacted by higher prices for carrot, cabbage, lettuce, and tomato, while the increase for the sub-class ‘Tubers, Plantains and Cooking Bananas’ was mainly attributed to higher prices for yam, Irish and sweet potatoes. The index for ‘Food and Beverage Serving Services’ rose by 12.9% and was the main factor impacting the index for the ‘Restaurants and Accommodation Services’ division. This increase was due to higher costs for beef patties, and meals consumed away from home, at cook shops and fast-food restaurants. The increase in ‘Furnishings, Household Equipment, and Routine Household Maintenance’ division was largely impacted by the 14% increase in the ‘Goods and Services for Routine Household Maintenance’ group resulting from a rise in Jamaica’s National Minimum Wage, which took effect on June 1, 2023. The fall in the index for the ‘Transport’ division resulted from lower cost for fuels, with the index for the class ‘Fuel & lubricants for personal transport equipment’ decreasing by 13.0%.
MAJOR CPI DIVISION MOVEMENTS
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 1.3% for June 2023. The movement resulted from increases in both the ‘Food’ group index (1.3%) and the ‘Non-Alcoholic Beverages’ group index (0.8%). The ‘Food’ group was influenced mainly by higher prices for items such as carrot, lettuce, tomato, and yam in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (5.3%), as dry weather conditions continued to hamper the supply of most agricultural items. However, other items such as cabbage, sweet pepper, and sweet potato, had cheaper prices. Increases were also recorded in other classes within the group, namely: ‘Cereals and cereal products’ (0.4%), ‘Meat and other parts of slaughtered land animals’ (0.3%) and ‘Milk, other dairy products and eggs’ (0.5%). The ‘Fruits and nuts’ class was the only one to see a drop (1.0%), owing to decreasing prices for goods such as melon and pineapple. The increase in the ‘Non-Alcoholic Beverages’ group was primarily impacted by a 0.9% increase in the index of the ‘Water, Soft drinks, and Other non-alcoholic beverages’ class and a 1.1% increase in the index of the ‘Coffee, Tea, and Cocoa’ class.
The point-to-point inflation rate for this division was 10.3%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.3% for June 2023. This upward movement was mainly from the 0.3% increase in the index for the ‘Alcoholic Beverages’ group. The index for the classes ‘Beer’ and ‘Spirits and liquors’ each increased by 0.3% while ‘Wine’ went up by 0.4%.
The point-to-point inflation rate for this division was 7.9%.
The index for the ‘Clothing and Footwear’ division increased by 0.4% for June 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.5% and 0.4% respectively.
The point-to-point inflation rate for this division was 5.8%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division declined by 0.8% for June 2023. This was mostly due to lower electricity, water and sewage rates. The index of the ‘Electricity, Gas, and Other Fuels’ group fell 1.7%, while the index of the ‘Water Supplies and Miscellaneous Services related to the Dwelling’ group fell 4.1%. However, increases were recorded in the groups ‘Actual Rentals for Housing’ (0.5%) and ‘Imputed Rentals for Housing’ (0.6%).
The point-to-point inflation rate for this division was 1.4%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 6.4% for June 2023. Increases were registered for all groups with the main contributor being ‘Goods and Services for Routine Household Maintenance’ group, which showed an 8.8% increase in its index following a 44.4% increase in the National Minimum Wage that impacted domestic helper salaries. The index for the groups, ‘Household Textiles’ and ‘Tools and Equipment for House and Garden’ each went up by 0.5%, with ‘Furniture, Furnishings and Loose Carpets’ increasing by 0.3%.
The point-to-point inflation rate was 11.4%.
The index for the ‘Health’ division increased by 0.4% for June 2023. This was primarily due to a 0.4% increase in the index for the ‘Medicines and Health Products’ group resulting from higher prices for some over-the-counter painkillers and prescription drugs. The index for the group ‘Out Patient Care Services’ increased by 0.3% due to a rise in fees charged by some general practitioners.
The point-to-point inflation rate was 4.8%.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.3% for June 2023. This movement was mainly impacted by higher prices for pet food in the group ‘Garden Products and Pets’ (0.5%) and increasing costs for stationery items in the group ‘Newspaper, Books and Stationery’ (0.4%).
The point-to-point inflation rate was 4.9%.
The index for the ‘Restaurants and Accommodation Services’ division grew by 4.2% for June 2023. This was mainly impacted by an increase of 4.2% in the index for the ‘Food and Beverages Serving Services’ group due to continued price increases for meals and drinks consumed away from home. The index for the ‘Accommodation Services’ group increased by 0.7%.
The point-to-point inflation rate was 12.8%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division grew by 0.3% for June 2023. This growth was due mainly to increases in prices for some personal care products.
The point-to-point inflation rate was 5.9%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+1.3%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.3%)
- Clothing and Footwear: (+ 0.4%)
- Housing, Water, Electricity, Gas and Other Fuels: (-0.8%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 6.4%)
- Health: (+ 0.4%)
- Transport: (0.0%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (+ 0.3%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (+ 4.2%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.3%)
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