July 16, 2021
Consumer Price Index – June 2021
According to the Statistical Institute of Jamaica (STATIN) the consumer price index for June 2021 was 109.8 resulting in an inflation rate of 0.7%, when compared to the previous month’s inflation rate of 1.2%. STATIN noted that, “This movement was primarily as a result of the 1.9% rise in the index for the heavily weighted ‘Food and Non-Alcoholic Beverages’ division. The index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ rose by 4.0% as prices continued to increase for some agricultural produce such as yams, potato, lettuce and cabbage. Higher prices for items within the class ‘Restaurants, café and the like’ resulted in a 5.9% increase in the division ‘Restaurants and Accommodation Services’. Also contributing to the overall inflation rate was the 0.4% increase in the index for ‘Transport’ division due to increased petrol prices. The increase was however tempered by a 2.4% decline in the index for ‘Housing, Water, Electricity, Gas and Other Fuels’ division, which was mainly attributable to a fall in electricity, water and sewage rates.
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 1.9% for June 2021 mainly due to the 1.9% rise in the index for the group ‘Food’. The index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ rose by 4% however it was tempered by reduced prices for sweet pepper, carrots and pumpkin. Other noteworthy increases within the “Food’ group were for the classes: ‘Cereals and cereal products’ 2.6%, ‘Meat and other parts of slaughtered land animals’ 1.9%, and ‘Fish and Seafood’ 1.1%. The index for the ‘Non-Alcoholic Beverages’ group, increased by 0.6%.
The ‘Alcoholic Beverages, Tobacco and Narcotics’ division grew by 0.5% for June 2021, resulting from the 0.6% increase in the index for the group ‘Alcoholic Beverages’. While the division for ‘Clothing and Footwear’ observed an increase of 0.4% in its index for June 2021. In the index, the group ‘Clothing’ and ‘Footwear’ rose by 0.4% and 0.7% respectively.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division fell by 2.4% influenced by the groups ‘Electricity, Gas and Other Fuels’ and ‘Water Supply and Miscellaneous Services Related to the Dwelling’ falling by 6.3% and 3.5% respectively. The decline was however tempered by increases within the groups: ‘Actual Rental for Housing’ and ‘Maintenance, Repairs and Security of the Dwelling’ that rose by 1.2% each.
Inflation of 0.4% was recorded for the division ‘Furnishings, Household Equipment and Routine Household Maintenance’, attributable to the 0.3% increase in the index for the group ‘Goods and Services for Routine Household Maintenance’ and the 0.5% increase in ‘Furniture, Furnishing and Loose Carpets’.
The division for ‘Health’ recorded an increase of 0.3% in its index for June 2021. The main contributing factor to this upward movement was the 0.3% increase in the groups ‘Medicines and Health Products’ and ‘Outpatient Care Services’. The index ‘Transport’ rose by 0.4%. According to STATIN “This was largely as a result of higher petrol prices locally.”
The index for the ‘Information and Communication’ division increased by 0.1% for June 2021. This movement was influenced mainly by higher costs for some information and communication equipment and services. The index for the division ‘Restaurants and Accommodation Services’ increased by 5.9% for June 2021. Resulting from increased prices for items within the class ‘Restaurant, cafes and Likes’.
The ‘Recreation, Sport and Culture’ division registered a 0.1% rise for the period under review. Resulting from increased prices for some books and stationery. Lastly, the index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division rose by 0.2% for the period under review. This was due to an increase in the cost of some personal care goods.
The movement in the index for calendar year-to-date was 2.4% and the point- to-point was 4.3% as at June 2021. The Rural Areas, Other Urban Centres and Greater Kingston Metropolitan reported inflation of 0.8%, 0.7% and 0.6% respectively.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (1.9%)
- Alcoholic Beverages, Tobacco and Narcotics: (0.5%)
- Clothing and Footwear: (0.4%)
- Housing, Water, Electricity, Gas and Other Fuels: (-2.4%)
- Furnishing, Household Equipment and Routine Household Maintenance: (0.4%)
- Health: (0.3%)
- Transport: (0.4%)
- Information and Communication: (0.1%)
- Recreation, Sport and Culture: (0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (5.9%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (0.2%)
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