Point-to-point inflation in single digits as economy grows
The Statistical Institute of Jamaica (STATIN) today reported that the point-to-point inflation rate for December 2022 was 9.4 per cent.
The point-to-point inflation rate is the measurement of the increase in the price of goods and services over a given period, in this case 12 months.
This increase is tracked on a monthly basis by the movement of the consumer price index (CPI).
The movement in the inflation rate was mainly driven by increases in the index for the divisions ‘Food and Non-Alcoholic Beverages’, which rose by 13.8 per cent , ‘Restaurants and Accommodations Services’, which increased by 23.9 per cent, while ‘Housing, Water, Electricity, Gas and Fuels’ increased by 2.8 per cent.
News of single-digit inflation comes after a tear where point-to-point inflation reported mostly above 10 per cent as increased shipping costs and currency depreciation drove up prices in the aftermath of the COVID-19 pandemic.
Meanwhile, the CPI recorded a negligible downward movement for December 2022 as the index stood at 127.9.
This movement in the CPI, according to STATIN, was influenced by a 1.0 per cent decline in the index for the heaviest weighted division ‘Food and Non-Alcoholic Beverages’, and a 0.9 per cent fall in the index for the ‘Transport’ division.
Lower prices for agricultural produce, namely carrots, tomato, cabbage and lettuce, resulted in a 6.3 per cent decrease in the index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’, according to STATIN.
Meanwhile, the downward movement in index for the ‘Transport’ division resulted mainly from lower costs for petrol, the agency said.
STATIN is also reporting that the total of goods and services produced in the Jamaican economy, GDP, rose by 5.9 per cent for the third quarter of 2022, that is, July to September, compared with the corresponding quarter of 2021.
STATIN said this resulted from a growth in both the Services and Goods Producing Industries of 6.0 per cent and 5.6 per cent, respectively.
Director General at STATIN, Carol Coy, said this is an indication of the economy’s continued recovery from the impact of the COVID-19 pandemic.
“Compared to the second quarter of 2022, the economy grew by 2.1 per cent, a continuation of the trend evident since the third quarter of 2020,” Coy told a quarterly briefing.
Coy said the category ‘Hotels & Restaurants’ grew by 35.3 per cent due to increased activities in hotels & other short-stay accommodations and restaurants, bars & canteens.
She said this was positively impacted by a 49.2 per cent increase in foreign national arrivals from all major markets including the USA, Canada and Europe.
The “Other Services Industry” grew by 13.1 per cent.
This, Coy said, was due to growth in recreational, cultural & sporting activities.
“The increase in stopover and cruise passenger arrivals and the revocation of COVID-19 containment measures contributed to the performance of this industry,” Coy said, noting that increased activities in the tourism sector also impacted Transport, Storage & Communication, which increased by 5.9 per cent.
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