September 18, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 6.8% for August 2023 compared to August 2022. However, for the month of August 2023, the inflation rate was +1.0%.
The main driver of the monthly increase (1.0%) was a 1.4% rise in the index for the ‘Food and Non-Alcoholic Beverages’ division, which followed a 4.0% increase in the index for the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class due to sustained growth in the prices for products such as cabbage, Irish potato, tomato, and yellow yam. The 5.2% increase in the index for the ‘Information and Communication’ division due to costlier mobile communication services rates also contributed to the rate of inflation. Additionally, the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.8% due to higher electricity, water and sewage rates and the index for the ‘Transport’ division increased by 1.0% due to increased petrol prices.
The upward movement in All Items (6.8%) between August 2022 and August 2023 was mostly related to increases in the index for the divisions: ‘Food and Non-Alcoholic Beverages’ (10.9%), ‘Restaurants and Accommodation Services’ (12.0%), and ‘Furnishings, Household Equipment and Routine Household Maintenance’ (11.1%). However, this was tempered by a 1.2% decline in the index for the ‘Transport’ division.
All classes within the ‘Food and Non-Alcoholic Beverages’ division increased with the ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ class being the largest contributor, up by 30.2%. This follows higher prices for yam, sweet potato, Irish potato, carrot, tomato, and cabbage during the period. Additionally, the index for the ‘Cereals and cereal products’ class increased by 5.1% due to higher prices for bread, flour, and rice, while the index for ‘Meat and other parts of slaughtered land animals’ increased by 4.1% due mostly to increased costs for chicken, turkey neck, corned beef and other meat products.
The main factor impacting the index for the ‘Restaurants and Accommodation Services’ division was higher costs for ‘Food and Beverage Serving Services’ (12.1%).
The increase in ‘Furnishings, Household Equipment, and Routine Household Maintenance’ division was largely impacted by the 13.6% increase in the ‘Goods and Services for Routine Household Maintenance’ group resulting from a rise in Jamaica’s National Minimum Wage increase, which took effect June 1, 2023.
A drop in the index for the ‘Transport’ division tempered these advances mostly due to decreasing petrol prices over the point-to-point period. For the review period, the ‘Fuel & lubricants for personal transport equipment’ class fell by 10.2%.
MAJOR CPI DIVISION MOVEMENTS
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 1.4% for August 2023. The movement resulted from increases in both the ‘Food’ group index (1.4%) and the ‘Non-Alcoholic Beverages’ group index (0.5%). The ‘Food’ group was influenced mainly by higher prices for agricultural items such as cabbage, yam, Irish potato, and sweet pepper in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (4.0%), as dry weather conditions continued to hamper the supply of most agricultural items. Increases were also recorded in all other classes within the group with the largest price movements seen in ‘Ready-made food and other food products n.e.c’ (2.5%), ‘Fruits and nuts’ (2.4%), and ‘Sugar confectionery and desserts’ (1.2%). Increases were registered for all classes in the ‘Non-Alcoholic Beverages’ group with the main contributor being a 0.6% increase in the index of the ‘Coffee, Tea, and Cocoa’ class followed by a 0.5% increase in the indexes of the ‘Water, Soft drinks, and Other non-alcoholic beverages’ and ‘Fruit and vegetable juices’ classes.
The point-to-point inflation rate for this division was 10.9%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 0.5% for August 2023. This upward movement was mainly from the 1.0% increase in the index for the ‘Tobacco’ group. The index for the ‘Alcoholic Beverages’ group increased by 0.3%.
The point-to-point inflation rate for this division was 7.4%.
The index for the ‘Clothing and Footwear’ division increased by 0.2% for August 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.3% and 0.1% respectively.
The point-to-point inflation rate for this division was 5.1%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.8% for August 2023. This was mostly due to higher electricity rates, which resulted in a 2.2% increase in the index of the ‘Electricity, Gas, and Other Fuels’ group. The index for ‘Maintenance, Repair, and Security of the Dwelling’ increased by 0.3%, while the index for ‘Water Supply and Miscellaneous Services Related to the Dwelling’ increased by 0.2%.
The point-to-point inflation rate for this division was 2.0%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.2% for August 2023. Increases were registered for all groups with the largest contributor being the ‘Goods and Services for Routine Household Maintenance’ (0.2%) due to higher prices for some household cleaning products.
The point-to-point inflation rate was 11.1%.
The index for the ‘Health’ division increased by 0.3% for August 2023. The main contributor was the index for the ‘Medicines and Health Products’ group, which went up by 0.2% resulting mainly from higher prices for some over-the-counter and prescription drugs.
The point-to-point inflation rate was 4.6%.
The index for the ‘Transport’ division increased by 1.0% for August 2023. This was mainly impacted by higher prices for fuels and lubricants for personal transport equipment, which resulted in a 3.7% increase in the index for the ‘Operation of Personal Transport Equipment’ group.
The point-to-point inflation rate was -1.2%.
The index for the ‘Information and Communication’ division increased by 5.2% for August 2023. This movement was mainly impacted by higher mobile communication services rates.
The point-to-point inflation rate was 2.8%.
The index for the ‘Recreation, Sport and Culture’ division increased by 1.2% for August 2023. This movement was mainly impacted by higher prices for textbooks stationery and drawing supplies in the group ‘Newspapers, Books and Stationery’ (1.5%).
The point-to-point inflation rate was 5.4%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division grew by 0.3% for August 2023. This growth was due mainly to increases in prices for some personal care and other personal effects products.
The point-to-point inflation rate was 5.1%.
Individual divisions saw the following changes:
Food and Non-Alcoholic Beverages: (+1.4%)
Alcoholic Beverages, Tobacco and Narcotics: (+ 0.5%)
Clothing and Footwear: (+ 0.2%)
Housing, Water, Electricity, Gas and Other Fuels: (+0.8%)
Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.2%)
Health: (+ 0.3%)
Transport: (1.0%)
Information and Communication: (5.2%)
Recreation, Sport and Culture: (+ 1.2%)
Education: (0.0%)
Restaurants and Accommodation Services: (0.0%)
Insurance and Financial Services (0.0%)
Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.3%)
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