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Decline driven by 1.3 per cent fall in index for heavily weighted ‘Food and Non-Alcoholic Beverages’ division

The Statistical Institute of Jamaica (STATIN) is reporting a deflation rate of 0.1 per cent for February.

For the previous month, STATIN said the deflation rate was 1.6 per cent.

“This movement was mainly as a result of the 1.3 per cent decrease in the index for the heavily weighted ‘Food and Non-Alcoholic Beverages’ division,” STATIN said.

The overall movement was, however, tempered by a 1.4 per cent increase in the index for the ‘Housing Water, Electricity, Gas and Other Fuels’ division and a 0.5 per cent increase in the index for the ‘Transport’ division. The only divisional decline for the month was the index for ‘Food and Non-Alcoholic Beverages,’ which fell by 1.3 per cent for February 2021.

The group ‘Food’ fell by 7.5 per cent while ‘Non-Alcoholic Beverages’ increased by 0.2 per cent. The decline in the ‘Food’ group was attributable to a decrease in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ and a 0.5 per cent decline in the index for the class ‘Fruits and nuts’.

Lower prices on agricultural produce

Lower prices for agricultural produce, such as tomato, cabbage, yam, potato and oranges, contributed to this decline. There was an increase of 0.4 per cent in the index for the classes ‘Cereal and cereal products’ and ‘Meat and other parts of slaughtered land animals,’ which moderated the decline in the index for the group.

For the group ‘Non-Alcoholic Beverages’, the index for all three classes rose: ‘Fruit and vegetable juices’ by 0.1 per cent, ‘Coffee, Tea, Cocoa’ by 0.3 per cent and ‘Water, Soft drinks and Other non-alcoholic beverages’ by 0.2 per cent.

The ‘Alcoholic Beverages, Tobacco and Narcotics’ division grew by 0.1 per cent for February 2021, resulting from increased prices within the ‘Alcoholic Beverages’ group which moved upwards by 0.1 per cent. The division for ‘Clothing and Footwear’ showed an increase of 0.2 per cent in its index for February 2021.

In the index, the groups ‘Clothing’ and ‘Footwear’ climbed by 0.2 per cent and 0.3 per cent, respectively. The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division advanced by 1.4 per cent, influenced by increased rates for electricity, water and sewage.  

This resulted in the index for the two groups ‘Electricity, Gas and Other Fuels’ and ‘Water Supply and Miscellaneous Services Relating to the Dwelling’ increasing by 3.6 per cent and 1.4 per cent, respectively. According to STATIN, “the increase in electricity was as a result of the new tariff rate changes for JPS approved by the Office of Utilities Regulation”.

General prices were up Furnishings and Household division

Inflation of 0.5 per cent was recorded for the division ‘Furnishings, Household Equipment and Routine Household Maintenance’. All groups within this division rose, namely  ‘Goods and Services for Routine Household Maintenance’ which increased by 0.4 per cent and ‘Furniture, Furnishing and Loose Carpets’ which rose by 1.8 per cent.

The division for ‘Health’ recorded an increase of 0.4 per cent in its index for February 2021. The main contributing factor to this upward movement were increases in the groups ‘Medicines and Health Products’ and ‘Outpatient Care Services’ which increased by 0.5 per cent and 0.3 per cent, respectively.

The group ‘Other Health Services’ reported a negligible movement. The index ‘Transport’ rose by 0.5 per cent. According to STATIN this was largely due to higher petrol prices.  

The ‘Information and Communication’ group rose by 0.1 per cent for February 2021 because of higher prices for some information and communication services. The ‘Recreation, Sport and Culture’ division registered a 0.3 per cent rise for February 2021, resulting from higher prices for items within the groups ‘Garden Products and Pets’ and ‘Newspapers, Books and Stationery’.

STATIN reported a 0.1 per cent increase in the ‘Restaurants and Accommodation Services’ for February 2021 due to an upward movement in the index for accommodation services. 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 good and services, as well as other personal effects. The movement in the index for fiscal year-to-date was 3.3 per cent and the point-to-point was 3.8 per cent as at February 2021.

The Greater Kingston Metropolitan Area, Rural Areas and Other Urban Centres all reported deflation of 0.1 per cent.

Individual divisions saw the following changes:

1. Food and Non-Alcoholic Beverages: (-1.3 per cent)
2. Alcoholic Beverages and Tobacco: (0.1 per cent)
3. Clothing and Footwear: (0.2 per cent)
4. Housing, Water, Electricity, Gas and Other Fuels: (1.4 per cent)
5. Furnishing, Household Equipment and Routine Household Maintenance: (0.5 per cent)
6. Health: (0.4 per cent)
7. Transport: (0.5 per cent)
8. Information and Communication: (0.1 per cent)
9. Recreation, Sport and Culture: (0.3 per cent)
10. Education: (0.0 per cent)
11. Restaurants and Accommodation Services: (0.1 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)