Inflation in September was 2.3%, more than doubling the rate in August

Jamaica’s consumer price index for September 2021 rose to 114.9, resulting in the rate of inflation jumping to 2.3 per cent.

This more than doubles the previous month’s inflation rate of 0.9 per cent.

The Statistical Institute of Jamaica (STATIN), which measures the island’s inflation, says this movement was primarily due to the 3.0 per cent increase in the index for the ‘Food and Non-Alcoholic Beverages’ division.

According to STATIN, “the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ rose by 9.9 per cent as the costs for agricultural produce such as tomato, cabbage, sweet pepper and carrot continued to trend upwards.

The index for the ‘Transport’ division rose by 8.1 per cent due to the increase of approximately 15.0 per cent in bus, route taxi and hackney carriage fares granted by the Government.

Furthermore, STATIN explains that, “the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division moved upwards by 0.8 per cent due to a higher electricity and water and sewage rates”.

The index for the ‘Food and Non-Alcoholic Beverages’ division increased by 3.0 per cent for September 2021, mainly due to the 3.1 per cent rise in the index for the group ‘Food’.

Big jump in certain food prices

The index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ rose by 9.9 per cent influenced mainly by higher prices for agricultural produce such as tomato, cabbage, carrot and sweet pepper. Other classes registering notable increases were: ‘Meat and other parts of slaughtered land animals’ (0.9 per cent), ‘Fruits and nuts’ (4.3 per cent) and ‘Cereals and cereal products’ (0.6 per cent).

The index for the ‘Non-Alcoholic Beverages’ group increased by 0.6 per cent. The ‘Alcoholic Beverages, Tobacco and Narcotics’ division grew by 0.3 per cent for September 2021, resulting from the 0.4 per cent increase in the index for the group ‘Alcoholic Beverages’ attributable to higher prices for spirits, wines and beers.

The division for ‘Clothing and Footwear’ observed an increase of 0.4 per cent in its index for September 2021. In the index, the group ‘Clothing’ and ‘Footwear’ rose by 0.3 per cent and 0.5 per cent respectively.

The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 0.8 per cent influenced by higher rates for electricity, water and sewage. The primary contribution to the increase is due a 1.9 per cent increase in the index for the group ‘Electricity, Gas and Other Fuels’ and a 1.4 per cent increase in ‘Water Supply and Miscellaneous Services Relating to the Dwelling’. 

There was also an increase in the index for the ‘Maintenance, Repair and Security of the Dwelling’ group which moved up by 1.4 per cent.

Inflation of 0.4 per cent was recorded for the division ‘Furnishings, Household Equipment and Routine Household Maintenance’ primarily due to the 0.4 per cent increase in the index for the group ‘Goods and Services for Routine Household Maintenance’ and a 0.8 per cent increase in the group for ‘Furniture, Furnishings and Loose Carpets’.

The division for ‘Health’ recorded an increase of 0.3 per cent in its index for September 2021. The main contributing factor to this upward movement was the 0.3 per cent increase in the group ‘Medicines and Health Products’.  ‘Outpatient Care Services’ recorded a 0.5 per cent uptick.

Transport Division among the biggest price jumpers

The index for the ‘Transport’ division increased by 8.1 per centwhich was influenced by a 12.7 per cent increase in the group ‘Passenger Transport Services’. This area was among the biggest price jumpers in the basket of goods used to measure Jamaica’s inflation rate.

STATIN says this movement in transport was influenced by the 15.0 per cent increase in bus, route taxi, and hackney carriage fares granted by the government. However, the increase was offset by lower petrol prices for personal transport equipment.

The ‘Recreation, Sport and Culture’ division registered a 1.1 per cent rise for the period under review. Resulting from an upward movement in prices for schoolbooks and stationery. The ‘Education’ index rose by 2.4 per cent for September 2021, due to an increase in tuition fees for private schools at the pre-primary and primary education level for the new school year.

The ‘Personal Care, Social Protection and Miscellaneous Goods and Services’ division index increased by 0.4 per cent for the review period. Increased cost for some personal care products and services contributed largely to this movement.

The movement in the index for calendar year-to-date was 6.6 per cent and the point-to-point was 8.2 per cent as at September 2021. The Greater Kingston Metropolitan reported inflation of 2.0 per cent, while the Rural Areas and Other Urban Centres reported inflation of 2.5 per cent and 2.3 per cent respectively.

Individual divisions saw the following changes:

1. Food and Non-Alcoholic Beverages: (3.0 per cent)
2. Alcoholic Beverages, Tobacco and Narcotics: (0.3 per cent)
3. Clothing and Footwear: (0.4 per cent)
4. Housing, Water, Electricity, Gas and Other Fuels: (0.8 per cent)
5. Furnishing, Household Equipment and Routine Household Maintenance: (0.4 per cent)
6. Health: (0.3 per cent)
7. Transport: (8.1 per cent)
8. Information and Communication: (0.0 per cent)
9. Recreation, Sport and Culture: (1.1 per cent)
10. Education: (2.4 per cent)
11. Restaurants and Accommodation Services: (0.0 per cent)
12. Insurance and Financial Services (0.0 per cent)
13. Personal Care, Social Protection and Miscellaneous Goods and Services: (0.4 per cent)