…Jumped by 1.2% for May

Having gone through a period of deflation (inflation going down), inflation is on the rise again in Jamaica, based on the latest numbers coming out of the Statistical Institute of Jamaica (STATIN).

STATIN is reporting that the consumer price index (which measures the movement of prices in the economy) for May 2021 was 109.0, resulting in an inflation rate of 1.2 per cent, when compared to the previous month’s deflation rate of 0.5 per cent.

According to STATIN, “this upward movement was primarily as a result of the 3.4 per cent 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 per cent during the month of May. Higher prices for starchy tubers such as yam, green banana and potatoes resulted in an upward movement of 3.0 per cent in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’.

Additionally, there was a 0.7 per cent increase in the index for the ‘Transport’ division which was largely due to higher prices for fuels.

Lower prices for sweet pepper, carrot and lettuce

The 1.1 per cent increase in the index for the ‘Food and Non-Alcoholic Beverages’ division was tempered by lower prices for sweet pepper, carrot and lettuce. There was a 3.0 per cent increase in the ‘Food’ class of vegetables, tubers, plantains, cooking bananas and pulses.

Other classes of food registered increases. They include were cereals and cereal products, up 0.6 per cent, meat and other parts of slaughtered land animals also up 0.6%, fish and seafood going up by 0.5 per cent and fruits and nuts jumping by 2.2 per cent.

The index for the ‘Non-Alcoholic Beverages’ group, increased by 0.2 per cent. The ‘Alcoholic Beverages, Tobacco and Narcotics’ division grew by 0.5 per cent for May 2021, resulting from the 0.7 per cent increase in the index for the group ‘Alcoholic Beverages’.

The division for ‘Clothing and Footwear’ observed an increase of 0.4 per cent in its index for May 2021. In the index, the group ‘Clothing’ and ‘Footwear’ rose by 0.4 per cent each. The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division climbed by 3.4 per cent influenced by a 9.6 per cent increase for the group ‘Electricity, Gas and Other Fuels’.

Higher light bill contributed to jump in services related to dwelling

The category ‘Water Supply and Miscellaneous Services Related to the Dwelling’ increased by 2.0 per cent. The electricity rates influenced the movement in the ‘Housing, Water, Electricity, Gas and Other Fuels’ division, while increased water and sewage rates impacted the ‘Water Supply and Miscellaneous Services Related to the Dwelling’ category.

Inflation of 0.5 per cent was recorded for the division ‘Furnishings, Household Equipment and Routine Household Maintenance’. This was attributable to the 0.5 per cent 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 per cent while ‘Household Appliances’ and ‘Household Textiles’ grew by 0.5 per cent. The division for ‘Health’ recorded an increase of 0.2 per cent in its index for May 2021.

The main contributing factor to this upward movement was the 0.3 per cent increase in the group ‘Medicines and Health Products’, additionally the index for the ‘Outpatient Care Services’ group went up by 0.1 per cent. The index ‘Transport’ rose by 0.7 per cent.

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 per cent 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 per cent 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 per cent, while increased costs for accommodation led to the 5.3 per cent increase in the index for ‘Accommodation Services’.

The ‘Recreation, Sport and Culture’ division registered a 0.1 per cen t rise for the month under review. This resulted from a 0.3 per cent increase for items within the group ‘Garden Products and Pets’ and the 0.1 per cent 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 per cent 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 per cent and the point- to-point was 5.0 per cent as at May 2021. The Rural Areas and Other Urban Centres both reported inflation of 1.2 per cent. While Greater Kingston Metropolitan reported inflation of 1.1 per cent.

Individual divisions saw the following changes:

1. Food and Non-Alcoholic Beverages: (1.1%)
2. Alcoholic Beverages, Tobacco and Narcotics: (0.5%)
3. Clothing and Footwear: (0.4%)
4. Housing, Water, Electricity, Gas and Other Fuels: (3.4%)
5. Furnishing, Household Equipment and Routine Household Maintenance: (0.5%)
6. Health: (0.2%)
7. Transport: (0.7%)
8. Information and Communication: (0.3%)
9. Recreation, Sport and Culture: (0.1%)
10. Education: (0.0%)
11. Restaurants and Accommodation Services: (0.3%)
12. Insurance and Financial Services (0.0%)
13. Personal Care, Social Protection and Miscellaneous Goods and Services: (0.4%