2013 inflation 9.7%, worse than 2012

The Statistical Institute of Jamaica (STATIN) has reported Jamaica’s inflation rate for December 2013 as 0.6 percent, which brings the 2013 calendar year inflation to 9.7 percent and 1.7 percentage points above the 8.0 percent recorded for 2012. Inflation is measured by the All Jamaica ‘All Divisions’ Consumer Price Index. The movement of the local currency, which suffered from a devaluation, played a role in the increase.

The division recording the highest movement for the calendar year 2013 was ‘Transport’ which increased by 20.4 percent due to increased bus fares in September. The ‘Communication’ division recorded the only decline, moving down by 4.2 percent as telecommunication rates fell during the year.

All divisions recorded increased movements for December. ‘Food and Non-Alcoholic Beverages’ moved up by 0.5 percent due mainly to increased prices in eggs and sugar; ‘Transport’ which moved up by a similar 0.5 percent due to the higher cost of petroleum and its related products and air fares; and ‘Housing, Water, Electricity, Gas and Other Fuels’ moving up by 0.7 percent, due to the higher cost for electricity. The movement from April was 6.8 percent as at December 2013.

All other divisions that make up the All Jamaica index recorded increases for December 2013. ‘Miscellaneous Goods and Services’ went up by 0.8 percent. ‘Furnishings Household Equipment and Routine Household Maintenance’ and ‘Restaurants and Accommodation Services’ each increased by 0.7 percent. ‘Clothing and Footwear’ rose by 0.5 percent, ‘Alcoholic Beverages and Tobacco’ 0.4 percent, ‘Recreation and Culture’ 0.3 percent and ‘Health’, 0.2 percent. There was no movement recorded for ‘Education’ and ‘Communication’.

The Index advanced in all three regions: Greater Kingston Metropolitan Area (GKMA), 0.7 percent, Other Urban Centres (OUC) and Rural Areas, 0.5 percent.