Durrant Pate/Contributor

General prices in Jamaica rose by 0.6 per cent in May bringing the year-over-year inflation rate to 6.1 per cent.

The Statistical Institute of Jamaica (STATIN) reports that the main driver for the 0.6% increase in the All-Jamaica Consumer Price Index (CPI) was a 1.8 per cent rise in the index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’. The CPI measures changes in the general level of prices for consumer goods and services purchased by private households.

The increase in the ‘Housing, Water, Electricity, Gas and Other Fuels’ division was due primarily to higher electricity rates, resulting in a 6.3 per cent increase in the index ‘Electricity, Gas and Other Fuels’. However, the overall rate of inflation for the month was tempered by a 0.3 per cent decline in the index for the ‘Transport’ division due to lower petrol prices.

Rise in food and beverages prices

The upward movement was mostly related to increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’ (10.7 per cent) and ‘Restaurants and Accommodation Services’ (8.6 per cent). The ‘Food’ group was largely responsible for the increase in the ‘Food and Non-Alcoholic Beverages’ index.

An increase was recorded for items in the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ (19.7 per cent). This resulted from a 14.9 per cent increase in the index for the sub-class ‘Vegetables’ and a 32.8 per cent rise in the index for the sub-class ‘Tubers, Plantains and Cooking Bananas’.

The sub-class ‘Vegetables’ was mainly impacted by higher prices for pumpkin, carrot and lettuce, while the increase for the sub-class ‘Tubers, Plantains and Cooking Bananas’ was mainly attributed to higher prices for yam and sweet potato. The index for ‘Food and Beverages Serving Services’ rose by 8.6 [er cemt and was the main factor impacting the index for the division ‘Restaurants and Accommodation Services’.

This increase was due to higher costs for meals consumed away from home.

According to STATIN, “these upward movements were however tempered by falls in the index for the divisions ‘Transport’ (-0.7 per cent) and ‘Information and Communication’ (-2.3 per cent). The fall in the ‘Transport’ division resulted from lower cost for fuels with the index for the class ‘Fuel & lubricants for personal transport equipment’ decreasing by 8.9 per cent.”

Major CPI division movements

The index for the ‘Food and Non-Alcoholic Beverages’ division rose by 0.7% for May 2023. The movement resulted from an increase of 0.7 per cent and 0.8 per cent in the index for ‘Food’ and ‘Non-Alcoholic Beverages’ groups respectively.

The ‘Food’ group was influenced mainly by higher prices for items in the class: ‘Vegetables, tubers, plantains, cooking bananas, and pulses’ (1.3 per cent). Increases were also recorded in other classes within the group. The ‘Non-Alcoholic Beverages’ group recorded increases for all classes.

The point-to-point inflation rate for this division was 10.7 per cent. The index for the ‘Alcoholic Beverages, Tobacco and Narcotics’ division rose by 0.3 per cent for May 2023. This upward movement was mainly from the 0.4 per cent increase in the index for the group ‘Alcoholic Beverages’.

The index for the classes ‘Beer’ and ‘Spirits and liquors’ each increased by 0.4 per cent while ‘Wine’ went up by 0.3 per cent. The point-to-point inflation rate for this division was 8.6 per cent. The index for the ‘Clothing and Footwear’ division increased by 0.2 per cent for May 2023.

The index for both groups within this division, ‘Clothing’ and ‘Footwear’ increased by 0.2 per cent and 0.1 per cent respectively. The point-to-point inflation rate for this division was 5.7 per cent.

The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division rose by 1.8 per cent for May 2023, being the largest increase among the divisions. This movement was mainly contributed by higher electricity rates resulting in a 6.3 per cent rise in the group ‘Electricity, Gas and Other Fuels’.

However, lower rates for water and sewage resulted in a 2.0 per cent decline in the index for the class ‘Water Supplies and Miscellaneous Services related to the Dwelling’. The point-to-point inflation rate for this division was 1.7 per cent.

Household and health divisions

The index for the ‘Furnishings, Household Equipment and Routine Household Maintenance’ division increased by 0.3 per cent for May 2023. Increases were registered for all groups within this division with the main contributors being ‘Goods and Services for Routine Household Maintenance’ and ‘Household Appliances’ each increasing by 0.3 per cent.

The index for the groups, ‘Household Textile’ and ‘Tools and Equipment for House and Garden’ each went up by 0.2 per cent, with ‘Furniture, Furnishings and Loose Carpets’ increasing by 0.1 per cent. The point-to-point inflation rate was 5.3 per cent.

The index for the ‘Health’ division increased by 0.3 per cent for May 2023. This was due primarily to a 0.3 per cent increase in the index for the group ‘Medicines and Health Products’ resulting from higher prices for some prescription drugs.

The index for the group ‘Outpatient Care Services’ increased by 0.5 per cent due to a rise in the cost of some ‘Preventative care services’ and ‘Outpatient dental services’. The point-to-point inflation rate was 4.8 per cent.