August 16, 2023
The Statistical Institute of Jamaica (STATIN) reported that the All-Jamaica Consumer Price Index (CPI) increased by 6.6% for July 2023 compared to July 2022. However, for the month of July 2023, the inflation rate was +1.1%.
The main driver of the monthly increase (1.1%) was a 2.3% rise in the index for the division: ‘Food and Non-Alcoholic Beverages’, which followed a 9.9% increase in the index for the ‘Vegetables, tubers, plantains, cooking bananas and pulses’ class due higher prices for products such as cabbage, Irish potato, tomato, sweet pepper, and yellow yam. Additionally, the 0.5% increase in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division due to higher electricity, water and sewage rates contributed to the rate of inflation.
The upward movement in All Items (6.6%) between July 2022 and July 2023 was mostly related to increases in the index for the divisions: ‘Food and Non-Alcoholic Beverages’ (11.3%), ‘Restaurants and Accommodation Services’ (12.4%), ‘Furnishings, Household Equipment and Routine Household Maintenance’ (11.3%) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (1.6%).
The ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ class, which climbed by 31.6%, was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index. This follows higher prices for yellow yam, sweet potato, Irish potato, carrot, tomato, and cabbage during the period. Additionally, ‘Cereals and cereal products’ increased by 6.5% due to higher prices for bread, flour, and rice, while ‘Meat and other parts of slaughtered land animals’ increased by 4.9% due mostly 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 meals consumed away from home, from fast-food restaurants and street vendors.
The increase in ‘Furnishings, Household Equipment, and Routine Household Maintenance’ division was largely impacted by the 13.9% increase in the ‘Goods and Services for Routine Household Maintenance’ group resulting from a rise in Jamaica’s National Minimum Wage which took effect June 1, 2023.
The increase in the index for ‘Housing, Water, Electricity, Gas and Other Fuels’ resulted from increases in the index for the groups: ‘Imputed Rentals for Housing’ (2.2%) and ‘Electricity, Gas, and Other Fuels’ (1.3%).
MAJOR CPI DIVISION MOVEMENTS
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 2.3% for July 2023. The movement resulted from increases in both the ‘Food’ group index (2.4%) and the ‘Non-Alcoholic Beverages’ group index (0.7%). The ‘Food’ group was influenced mainly by higher prices for agriculture items such as tomato, yam, cabbage, and sweet pepper in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (9.9%), as dry weather conditions continued to hamper the supply of most agricultural items. Increases were also recorded in other classes within the group, namely: ‘Milk, other dairy products and eggs’ (0.4%), ‘Cereals and cereal products’ (0.3%), ‘Meat and other parts of slaughtered land animals’ (0.3%) and ‘Fish and Seafood’ (0.2%). The ‘Fruits and nuts’ class was the only one to see a drop (0.8%), owing to decreasing prices for melon, pineapple and ackee. Increases were registered for all classes in the ‘Non-Alcoholic Beverages’ group with the main contributor being a 0.7% increase in the index of the ‘Water, Soft drinks, and Other non-alcoholic beverages’ class followed by a 0.8% increase in the index of the ‘Coffee, Tea, and Cocoa’ class and ‘Fruit and vegetable juices’ (0.5%).
The point-to-point inflation rate for this division was 11.3%.
The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division increased by 0.4% for July 2023. This upward movement was mainly from the 0.4% increase in the index for the ‘Alcoholic Beverages’ group owing to increases in the index for the classes ‘Beer’ (0.5%), ‘Spirits and liquors’ (0.2%) and ‘Wine’ (0.2%).
The point-to-point inflation rate for this division was 7.6%.
The index for the ‘Clothing and Footwear’ division increased by 0.3% for July 2023. The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.4% and 0.2% respectively.
The point-to-point inflation rate for this division was 5.6%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division increased by 0.5% for July 2023. This was mostly due to higher water and sewage rates, which resulted in a 2.7% increase in the index of the ‘Water Supply and Miscellaneous Services related to the Dwelling’ group, while the index of the ‘Electricity, Gas, and Other Fuels’ group increased by 0.7% following higher electricity rates.
The point-to-point inflation rate for this division was 1.6%.
The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.4% for July 2023. Increases were registered for all groups. The index for ‘Household Textiles’ and ‘Tools and Equipment for House and Garden’ each went up by 0.4%, while ‘Goods and Services for Routine Household Maintenance’ increased by 0.5%, and ‘Furniture, Furnishings and Loose Carpets’ and ‘Household Appliances’ both went up by 0.1%.
The point-to-point inflation rate was 11.3%.
The index for the ‘Health’ division increased by 0.3% for July 2023. Increases were registered for all groups. The index for ‘Medicines and Health Products’ group went up by 0.3% resulting mainly from higher prices for some over-the-counter painkillers, prescription drugs, condoms and rubbing alcohol, while the index for ‘Out Patient Care Services’ increased by 0.4% due to a rise in fees charged by some general practitioners and ophthalmologists. ‘Other Health Services’ went up by 0.9% due to higher charges for x-rays services.
The point-to-point inflation rate was 4.7%.
The index for the ‘Transport’ division increased by 0.1% for July 2023. This was mainly impacted by higher toll prices for the East-West section of Highway 2000, which resulted in a 2.7% increase in the index for the ‘Other Services in respect of Personal Transport Equipment’ class. Additionally, the ‘Purchase of Vehicles’ group contributed with an increase of 0.7%. However, the division’s movement was restrained by a 0.6% decline in the index for the ‘Fuels and Lubricants for Personal Transport Equipment’ class, owing to decreased petrol prices.
The point-to-point inflation rate was -1.9%.
The index for the ‘Recreation, Sport and Culture’ division increased by 0.4% for July 2023. This movement was mainly impacted by higher prices for books and stationery supplies in the group ‘Newspaper, Books and Stationery’ (0.5%).
The point-to-point inflation rate was 5.0%.
The index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division grew by 0.4% for July 2023. This growth was due mainly to increases in prices for some personal care products.
The point-to-point inflation rate was 5.5%.
Individual divisions saw the following changes:
Food and Non-Alcoholic Beverages: (+2.3%)
Alcoholic Beverages, Tobacco and Narcotics: (+ 0.4%)
Clothing and Footwear: (+ 0.3%)
Housing, Water, Electricity, Gas and Other Fuels: (+0.5%)
Furnishing, Household Equipment and Routine Household Maintenance: (+ 0.4%)
Health: (+ 0.3%)
Transport: (0.1%)
Information and Communication: (0.0%)
Recreation, Sport and Culture: (+ 0.4%)
Education: (0.0%)
Restaurants and Accommodation Services: (0.0%)
Insurance and Financial Services (0.0%)
Personal Care, Social Protection and Miscellaneous Goods and Services: (+ 0.4%)
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