June 16, 2021
Consumer Price Index – May 2021
According to the Statistical Institute of Jamaica (STATIN) the consumer price index for May 2021 was 109.0 resulting in an inflation rate of 1.2%, when compared to the previous month’s deflation rate of 0.5%. STATIN noted that, “This upward movement was primarily as a result of the 3.4% rise in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division. This was due mainly to an increase in the rates for electricity, water and sewage. The index for the heavily weighted ‘Food and Non-Alcoholic Beverages’ division rose by 1.1% for the review period. Higher prices for starchy tubers such as yam, green banana and potatoes resulted in an upward movement of 3.0% in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’. Additionally, there was a 0.7% increase in the index for the ‘Transport’ division which was largely due to higher prices for fuels.”
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 1.1% for May 2021. However, this was tempered by lower prices for sweet pepper, carrot and lettuce. Besides the 3.0% increase in the ‘Food’ class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ Other classes registering increases were: ‘Cereals and cereal products’ 0.6%, ‘Meat and other parts of slaughtered land animals’ 0.6%, ‘Fish and Seafood’ 0.5% and ‘Fruits and nuts’ 2.2%. The index for the ‘Non-Alcoholic Beverages’ group, increased by 0.2%.
The ‘Alcoholic Beverages, Tobacco and Narcotics’ division grew by 0.5% for May 2021, resulting from the 0.7% 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 May 2021. In the index, the group ‘Clothing’ and ‘Footwear’ rose by 0.4% each.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division climbed by 3.4% influenced by a 9.6% increase for the group ‘Electricity, Gas and Other Fuels’. and a 2.0% increase in the index for the group ‘Water Supply and Miscellaneous Services Related to the Dwelling’. Higher electricity rates influenced the movement in the former group, while increased water and sewage rates impacted the latter.
Inflation of 0.5% was recorded for the division ‘Furnishings, Household Equipment and Routine Household Maintenance’, attributable to the 0.5% increase in the index for the group ‘Goods and Services for Routine Household Maintenance’ as a result of increased prices for some household non-durable items such as laundry soaps, detergents and other cleaning products. The index for ‘Furniture, Furnishing and Loose Carpets’ also went up by 0.6% while ‘Household Appliances’ and ‘Household Textiles’ grew by 0.5%.
The division for ‘Health’ recorded an increase of 0.2% in its index for May 2021. The main contributing factor to this upward movement was the 0.3% increase in the group ‘Medicines and Health Products’, additionally the index for the ‘Outpatient Care Services’ group went up by 0.1%. The index ‘Transport’ rose by 0.7%. According to STATIN “This was largely as a result of higher petrol prices for personal transport equipment.”
The index for the ‘Information and Communication’ division increased by 0.3% for May 2021. This movement was influenced mainly by higher costs for some information and communication services. The index for the division ‘Restaurants and Accommodation Services’ increased by 0.3% for May 2021. Higher prices for meals consumed from fast food restaurants, resulted in the index for the group ‘Food and Beverage Serving Services’ increasing by 0.2% , while increased costs for accommodation led to the 5.3% increase in the index for ‘Accommodation Services’.
The ‘Recreation, Sport and Culture’ division registered a 0.1% rise for the period under review. Resulting from a 0.3% increase for items within the group ‘Garden Products and Pets’ and the 0.1% upward movement in the index for the group ‘Newspapers, Books and Stationery’. Lastly, the index for the ‘Personal Care, Social Protection and Miscellaneous Good and Services’ division rose by 0.4% 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 1.7% and the point- to-point was 5.0% as at May 2021. The Rural Areas and Other Urban Centres both reported inflation of 1.2%. While Greater Kingston Metropolitan reported inflation of 1.1%.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (1.1%)
- Alcoholic Beverages, Tobacco and Narcotics: (0.5%)
- Clothing and Footwear: (0.4%)
- Housing, Water, Electricity, Gas and Other Fuels: (3.4%)
- Furnishing, Household Equipment and Routine Household Maintenance: (0.5%)
- Health: (0.2%)
- Transport: (0.7%)
- Information and Communication: (0.3%)
- Recreation, Sport and Culture: (0.1%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (0.3%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (0.4%)
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