Consumer Price Index – May 2020
The consumer price index for May 2020 was 103.8 resulting in an inflation rate of 0.1% increase when compared to previous month’s 103.7 price index, according to the Statistical Institute of Jamaica (STATIN). This increase was as result of, ‘Food and Non- Alcoholic Beverages’, the heaviest weighted division 1.1% increase in its index. While, the division of ‘Housing, Water and Electricity’, recorded a rate of 1.5% increase due to a 5.6% increase in ‘Electricity, Gas and Other Fuels.’ However, the overall movement in the index was offset by a decline of 22.1% in the index for the ’Education’ division, due mainly to decline in tuition fees for the summer term. The ‘Transport’ division index also declined by 0.3%, primarily due to lower prices for petrol. Inflation within the Greater Kingston Metropolitan Area, Rural Areas and Other Urban Centres each recorded an inflation rate of 0%, 0.2% and -0.2%, respectively for May 2020.
The index for the ‘Food and Non-Alcoholic Beverages’ division was 1.1% increase in its index for May 2020. The ‘Food’ group index recorded 1.2% and the ‘Non-Alcoholic Beverages’ group went up by 0.8%. Notably, all classes within both groups experienced an increase. Additionally, ‘Cereal and cereal products’ went up by 0.7% while ‘Meat and other parts of slaughtered land animals’ and ‘Fish and Seafood’ were up by 0.6% and 1%, respectively.
The division for ‘Clothing and Footwear’ observed an increase of 0.4% in its index for May 2020. In the index the group ‘Clothing’ registered growth of 0.5% and ‘Footwear’ climbed by 0.3% for May 2020.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division recorded a 1.5% increase in its index for May 2020. The higher rates for electricity caused a 5.6% climb in the index for the group ‘Electricity, Gas and Other Fuels’. However, there were lower water and sewage rates in May 2020 which contributed to decrease of 1.7% in the index for ‘Water Supply and Miscellaneous Services Related to the Dwelling’ as stated by STATIN.
The division for ‘Health’ recorded an increase of 0.2% in its index for May 2020. This resulted mainly from the ‘Medicines and Health Products’ and ‘Out Patient Care Services’ groups which both increased by 0.2% .
The index for the divisions ‘Transport’ decreased by 0.3%. The main contributor to this movement was from the ‘Operation of Personal Transport Equipment’ which went down by 1.7% as a result of a decline in ‘Fuels and Lubricants for Personal Transport Equipment’ by 2.5%. On the other hand, the index for ‘Transport Services of Goods’ recorded a 0.6% increase for the month of May.
The ‘Education’ division registered a 22.1% decline for May 2020 due to decrease in tuition fees for private institutions for the summer term, related to the COVID-19 pandemic. Lastly, the division for ‘Personal Care, Social Protection and Miscellaneous Goods and Services’ produced an increase of 0.8% for May 2020 which was a result of the upward movements of prices of some personal care products.
The movement in the index for year to date inflation was 1.7% and fiscal year-to-date was 0.1%. Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (1.1%)
- Alcoholic Beverages and Tobacco: (0.6%)
- Clothing and Footwear: (0.4%)
- Housing, Water, Electricity, Gas and Other Fuels: (1.5%)
- Furnishing, Household Equipment and Routine Household Maintenance: (0.6%)
- Health: (0.2%)
- Transport: (-0.3%)
- Information and Communication: (0.0%)
- Recreation, Sport and Culture: (0.2%)
- Education: (-22.1%)
- Restaurants and Accommodation Services: (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (0.8%)
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
