November 16, 2023
The Statistical Institute of Jamaica (STATIN) reported that for October 2023, the point-to-point inflation rate was 5.1%; 0.8 percentage points lower than the prior point-to-point inflation rate. However, for the month of October 2023, the inflation rate was +0.8%.
The main driver of the monthly increase (0.8%) was a 1.7% rise in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division, which followed increases mainly in the groups: ‘Electricity, Gas and Other Fuels’ (4.1%) and ‘Water Supply and Miscellaneous Services related to the Dwelling’ (1.2%), owing to higher electricity, water, and sewage rates. Other contributors to the increase were the 0.7% rise in the index for the ‘Food and Non-Alcoholic Beverages’ division due mainly to the ‘Food’ group, which also saw a 0.7% increase in its index following the hike in some agricultural produce prices and the 2.1% increase in the index for the ‘Restaurants and Accommodation Services’ division owing mainly to a rise in the ‘Food and Beverage Serving Services’ group. However, the overall inflation rate for this period was tempered by a 0.1% decline in the index for the ‘Transport’ division due mainly to lower petrol costs.
The movement in All Items (5.1%) between October 2022 and October 2023 was mostly related to increases in the divisions: ‘Food and Non-Alcoholic Beverages’ (8.3%), ‘Restaurants and Accommodation Services’ (13.1%), and ‘Furnishings, Household Equipment and Routine Household Maintenance’ (10.8%). However, this was tempered by a 3.5% downturn in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division.
Increases in the index for the groups: ‘Cereals and cereal products’ (4.3%) and ‘Meat and Other parts of slaughtered land animals’ (3.9%), were largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index.
The main factor impacting the index for the ‘Restaurants and Accommodation Services’ division was the similar increase in the index for the ‘Food and Beverage Serving Services’ group.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division went up mainly because of a 13.5% rise in the index for the ‘Goods and Services for Routine Household Maintenance’ group, which followed an increase in the National Minimum Wage for Jamaica on June 1, 2023.
The decline in ‘Housing, Water, Electricity, Gas and Other Fuels’ division was largely impacted by the 10.4% decrease in the ‘Electricity, Gas and Other Fuels’ group resulting from a fall in electricity charges.
MAJOR CPI DIVISION MOVEMENTS
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 0.7% for October 2023. The movement resulted from increases in both the ‘Food’ group index (0.7%) and the ‘Non-Alcoholic Beverages’ group index (0.5%). The ‘Food’ group index was influenced mainly by a 1.2% increase in the index for the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class owing to higher prices for agricultural produce such as carrot, pumpkin, Irish potato, and sweet potato tempered by lower costs for items such as cabbage, onion and yam. Notably, increases were also registered in the classes: ‘Fruits and Nuts’ (2.6%), ‘Ready-made food and other food products n.e.c’ (1.3%), and Sugar, confectionery and desserts’ (0.5%). For the ‘Non-Alcoholic Beverages’ group, the ‘Fruit and vegetable juices’ class (0.9%) was the main contributor to the increase, followed by ‘Water, Soft drinks, and Other non-alcoholic beverages’ (0.3%) and ‘Coffee, Tea, Cocoa’ (0.5%).
The point-to-point inflation rate for this division was 8.3%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 0.4% for October 2023. The ‘Alcoholic Beverages’ group index, which rose by 0.4% was primarily responsible for the increase due to higher prices for ‘Beer’.
The point-to-point inflation rate for this division was 7.1%.
The index for the ‘Clothing and Footwear’ division increased by 0.3% for October 2023. The index for both groups in the division increased. The ‘Clothing’ group index increased by 0.3% while the index for the ‘Footwear’ group went up by 0.2%.
The point-to-point inflation rate for this division was 4.7%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 1.7% for October 2023. This was mostly due to higher electricity rates, which resulted in a 4.1% 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 1.2%, resulting from higher rates for water and sewage. There was a 2.3% increase in the index for the ‘Maintenance, Repair and Security of the Dwelling’ group due mainly to higher prices for paint.
The point-to-point inflation rate for this division was -3.5%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.3% for October 2023. Increases were registered for all groups with the largest contributor being the ‘Goods and Services for Routine Household Maintenance’ (0.3%). The other groups increased as follows: ‘Household Textiles’ (0.4%), ‘Furniture, Furnishings and Loose Carpets (0.2%) and ‘Household Appliances’ (0.1%).
The point-to-point inflation rate was 10.8%.
The index for the ‘Health’ division increased by 0.2% for October 2023. The main contributor was the index for the ‘Medicines and Health Products’ group, which had a similar increase resulting from higher prices for some over-the-counter and prescription drugs. The division was also affected by a similar increase in the index of the ‘Outpatient Care Services’ group.
The point-to-point inflation rate was 4.5%.
The index for the ‘Transport’ division decreased by 0.1% for October 2023. This was mainly impacted by the decline in some petroleum products.
The point-to-point inflation rate was negligible.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.3% for October 2023. This movement was mainly impacted by higher prices for books and stationery supplies in the group ‘Newspapers, Books and Stationery’ (0.3%).
The point-to-point inflation rate was 4.3%.
The index for the division ‘Restaurants and Accommodation Services’ increased by 2.1% for October 2023. This was mainly impacted by higher prices for some meals consumed away from home.
The point-to-point inflation rate was 13.1%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division grew by 0.4% for October 2023. This growth was due mainly to increases in prices for some personal care items and other personal effects products.
The point-to-point inflation rate was 4.8%.
Individual divisions saw the following changes:
Food and Non-Alcoholic Beverages: (+0.7%)
Alcoholic Beverages, Tobacco and Narcotics: (+ 0.4%)
Clothing and Footwear: (+ 0.3%)
Housing, Water, Electricity, Gas and Other Fuels: (+1.7%)
Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.3%)
Health: (+ 0.2%)
Transport: (-0.1%)
Information and Communication: (0.0%)
Recreation, Sport and Culture: (+ 0.3%)
Education: (0.0%)
Restaurants and Accommodation Services: (2.1%)
Insurance and Financial Services (0.0%)
Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.4%)
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