June 16, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 6.1% for May 2023 compared to May 2022. However, for the month of May 2023, the inflation rate was +0.6%. The main driver of the increase was a 1.8% rise in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’. The increase in the division was due primarily to higher electricity rates, resulting in a 6.3% increase in the index ‘Electricity, Gas and Other Fuels’. However, the overall rate of inflation was tempered by a 0.3% decline in the index for the ‘Transport’ division due to lower petrol prices.
All Items saw an increase between May 2022 and May 2023 of 6.1%. The upward movement was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (10.7%) and ‘Restaurants and Accommodation Services’ (8.6%). The ‘Food’ group was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index. An increase was recorded for items in the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (19.7%). This resulted from a 14.9% increase in the index for the sub-class ‘Vegetables’ and a 32.8% rise in the index for the sub-class ‘Tubers, Plantains and Cooking Bananas’. The sub-class ‘Vegetables’ was mainly impacted by higher prices for pumpkin, carrot and lettuce, while the increase for the sub-class ‘Tubers, Plantains and Cooking Bananas’ was mainly attributed to higher prices for yam and sweet potato. The index for ‘Food and Beverages Serving Services’ rose by 8.6% and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’. This increase was due to higher costs for meals consumed away from home.
These upward movements were however tempered by falls in the index for the divisions ‘Transport’ (-0.7%) and ‘Information and Communication’ (-2.3%). 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 8.9%. The 2.8% decline in the index for the class ‘Information and Communication Services’ was the chief contributor to the fall in the index for the division ‘Information and Communication’.
MAJOR CPI DIVISION MOVEMENTS
- The index for the ‘Food and Non-Alcoholic Beverages’ division rose by 0.7% for May 2023. The movement resulted from an increase of 0.7% and 0.8% 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’ (1.3%). Increases were also recorded in other classes within the group, namely: ‘Cereals and cereal products’ (1.0%), ‘Milk, other dairy products, and eggs’ (0.6%), ‘Fish and Seafood’ (0.3%), and ‘Meat and other parts of slaughtered land animals’ (0.3%). The ‘Non-Alcoholic Beverages’ group recorded increases for all classes: ‘Fruit and Vegetable Juices’ and ‘Water, Soft drinks, and Other non-alcoholic beverages’ each by (0.9%) and ‘Coffee, Tea and Cocoa’ (0.5%).
The point-to-point inflation rate for this division was 10.7%.
- The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.3% for May 2023. This upward movement was mainly from the 0.4% increase in the index for the group ‘Alcoholic Beverages’. The index for the classes ‘Beer’ and ‘Spirits and liquors’ each increased by 0.4% while ‘Wine’ went up by 0.3%.
The point-to-point inflation rate for this division was 8.6%.
- The index for the ‘Clothing and Footwear’ division increased by 0.2% for May 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.2% and 0.1% respectively.
The point-to-point inflation rate for this division was 5.7%.
- The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 1.8% for May 2023, being the largest increase among the divisions. This movement was mainly contributed by higher electricity rates resulting in a 6.3% rise in the group ‘Electricity, Gas and Other Fuels’. However, lower rates for water and sewage resulted in a 2.0% decline in the index for the class ‘Water Supplies and Miscellaneous Services related to the Dwelling’.
The point-to-point inflation rate for this division was 1.7%.
- The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.3% for May 2023. Increases were registered for all groups within this division with the main contributors being ‘Goods and Services for Routine Household Maintenance’ and ‘Household Appliances’ each increasing by 0.3%. The index for the groups, ‘Household Textile’ and ‘Tools and Equipment for House and Garden’ each went up by 0.2%, with ‘Furniture, Furnishings and Loose Carpets’ increasing by 0.1%.
The point-to-point inflation rate was 5.3%.
- The index for the ‘Health’ division increased by 0.3% for May 2023. This was due primarily to a 0.3% increase in the index for the group ‘Medicines and Health Products’ resulting from higher prices for some prescription drugs. The index for the group ‘Outpatient Care Services’ increased by 0.5% due to a rise in the cost of some ‘Preventative care services’ and ‘Outpatient dental services’.
The point-to-point inflation rate was 4.8%.
- The index for the ‘Transport’ division declined by 0.3% for May 2023. This was mainly impacted by lower petrol prices.
The point-to-point inflation rate was 0.7%.
- The index for the ‘Information and Communication’ division increased by 0.3% for May 2023. There were increased prices for items within the group ‘Information and Communication Equipment’ and ‘Information and Communication Services’ by 0.1% and 0.3% respectively. For the former group, there were increased prices for cordless telephones and tablets, while for the latter group, there were higher costs for internet services.
The point-to-point inflation rate was 2.3%.
- The index for the ‘Recreation, Sport and Culture’ division increased by 0.1% for May 2023. This movement was impacted mainly by higher prices for toys for children in the group ‘Other Recreational Goods’ (1.7%) and food for pets in the group ‘Garden Products and Pets’ (0.5%).
The point-to-point inflation rate was 5.3%.
- The index for the division ‘Restaurants and Accommodation Services’ increased by 0.1% for May 2023. This was mainly impacted by an increase of 0.1% for the ‘Food and Beverages Serving Services’ group. The index for the group Accommodation Services increased by 0.9%.
The point-to-point inflation rate was 8.6%.
- The index for the division ‘Personal Care, Social Protection and Miscellaneous Good and Services’ increased by 0.3% for May 2023. This increase was due mainly to the continued increase in prices for some personal care products.
The point-to-point inflation rate was 6.5%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (+0.7%)
- Alcoholic Beverages, Tobacco and Narcotics: (+ 0.3%)
- Clothing and Footwear: (+ 0.2%)
- Housing, Water, Electricity, Gas and Other Fuels: (+1.8%)
- Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.3%)
- Health: (+ 0.3%)
- Transport: (-0.3%)
- Information and Communication: (+0.3%)
- Recreation, Sport and Culture: (+ 0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (+ 0.1%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.3%)
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