August 19, 2021
Consumer Price Index – July 2021
According to the Statistical Institute of Jamaica (STATIN) the consumer price index for July 2021 was 111.4 resulting in an inflation rate of 1.5% when compared to the previous month’s inflation rate of 0.7%. STATIN noted that, “This movement was primarily due to the 2.3% increase in the index of the heavily weighted ‘Food and Non-Alcoholic Beverages’ division. The class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ was the main contributor, with a 7.0% rise in the index due to higher prices for some agricultural produce.” Furthermore, “The increase in the ‘Housing, Water, Electricity, Gas and Other Fuels’ division also strongly impacted the inflation rate. The index for that division rose by 1.3%, due mainly to higher electricity, sewage and water rates. Additionally, the index for the division ‘Restaurant and Accommodation Services’, increased by 3.2%, due mainly to higher prices for meals consumed away from home. The index for the ‘Transport’ division increased by 0.8%, mainly as a result of higher petrol prices.”
The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 2.3% for July 2021 mainly due to the 2.4% rise in the index for the group ‘Food’. The index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ rose by 7% influenced mainly by higher prices for agricultural produce, such as yam, Irish potato, cabbage, onion and tomato. There were increases for most of the other classes within the group, except for the class ‘Fruits and nuts’ which declined by 1.7%. ‘Cereals and cereal products’, ‘Meat and other parts of slaughtered land animals’, and ‘Milk, other diary products and eggs’ also rose by 1.7%, 1.7% and 1.3% respectively. The index for the ‘Non-Alcoholic Beverages’ group, increased by 0.8%.
The ‘Alcoholic Beverages, Tobacco and Narcotics’ division grew by 0.4% for July 2021, resulting from the 0.5% 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 July 2021. In the index, the group ‘Clothing’ and ‘Footwear’ rose by 0.5% and 0.1% respectively.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 1.3% influenced by the groups ‘Electricity, Gas and Other Fuels’ and ‘Water Supply and Miscellaneous Services Related to the Dwelling’ increasing by 2.6% and 3.5% respectively. These movements were due mainly to increased electricity, water and sewage rates. The group ‘Maintenance, Repair and Security of the Dwelling’ also advanced by 0.3%.
Inflation of 0.5% was recorded for the division ‘Furnishings, Household Equipment and Routine Household Maintenance’ as all of the groups within this division registered increases. ‘Household Appliances’ recorded the largest increase of 1.2% while ‘Furniture, Furnishing and Loose Carpets’, ‘Household Textiles’, ‘Tools and Equipment for House and Garden’ and ‘Goods and Services for Routine Household Maintenance’ each moved up by 1.0%, 0.4%, 0.8%, 0.4% respectively.
The division for ‘Health’ recorded an increase of 0.5% in its index for July 2021. The main contributing factor to this upward movement was the 0.6% increase in the groups ‘Outpatient Care Services’ while ‘Medicines and Health Products’ recorded a 0.5% uptick. The index ‘Transport’ rose by 0.8%. According to STATIN “This upward movement was influenced mainly by higher prices for petrol and toll charges.”
The index for the ‘Information and Communication’ division increased by 0.1% for two consecutive months. 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 3.2% for July 2021. Resulting from increased prices for items within the class ‘Restaurant, cafes and Likes’.
The ‘Recreation, Sport and Culture’ division registered a 0.5% 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 0.6% 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 3.4% and the point- to-point was 5.3% as at July 2021. The Rural Areas, Other Urban Centres and Greater Kingston Metropolitan reported inflation of 1.4%, 1.5% and 1.6% respectively.
Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (2.3%)
- Alcoholic Beverages, Tobacco and Narcotics: (0.4%)
- Clothing and Footwear: (0.4%)
- Housing, Water, Electricity, Gas and Other Fuels: (1.3%)
- Furnishing, Household Equipment and Routine Household Maintenance: (0.5%)
- Health: (0.5%)
- Transport: (0.8%)
- Information and Communication: (0.1%)
- Recreation, Sport and Culture: (0.5%)
- Education: (0.0%)
- Restaurants and Accommodation Services: (3.2%)
- Insurance and Financial Services (0.0%)
- Personal Care, Social Protection and Miscellaneous Goods and Services: (0.6%)
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