Date: December 18, 2018
Consumer Price Index – November 2018
The consumer price index for the month of November 2018 was 0.0%, following the 0.7% increase in October 2018, according to The Statistical Institute of Jamaica (STATIN). The Consumer Price Index for the month of November remained at 257.4, relative to the 257.4 reported for October 2018. This negligible movement was largely attributed to the upward movement in the division, ‘Food and Non-Alcoholic Beverages’ by 0.3% but however tempered by the 0.8% downward movement in the division ‘Housing, Water, Electricity, Gas and Other Fuels’. Inflation within the Greater Kingston Metropolitan Area, Other Urban Centres and Rural Areas all registered negligible movement of 0.0% in each of the three index.
The index for the ‘Food and Non-Alcoholic Beverages’ division recorded a 0.3% increase in its index for November 2018, following a 1.7% upward movement for October 2018. This resulted from the upward movements within the ‘Food’ and ‘Non-Alcoholic Beverages’ groups by 0.3% and 0.2% respectively. Within the ‘Food’ group, the class ‘Vegetables and Starchy Foods’ increased 0.1% while the class ‘Fruits’ increased by 0.9%. Within the ‘Non-Alcoholic Beverages’ group the classes ‘Mineral Waters, Soft Drinks, Fruit and Vegetable Juices’ and ‘Coffee, Tea, and Cocoa’ each recorded increases of 0.2%.
The index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division however recorded a 0.8% decline in its index for November 2018, following a 1.3% downward movement for October 2018. This was a result of the group ‘Electricity, Gas and Other Fuels’ registering a decline of 2.4% in its index. According to STATIN, this movement was “due to a fall in electricity rates.” This movement was however tempered by the group ‘Water Supply and Miscellaneous Services Related to the Dwelling’ increasing 3.8% due to increased water and sewage rates. There was also an increase in the group ‘Maintenance and Repair of the Dwelling’ which recorded a 0.4% increase in its index.
The indexes for the divisions ‘Clothing and Footwear, ‘Education’ and ‘Miscellaneous Goods and Services’ each recorded increases of 0.2%.The former was attributed to the upward movement groups ‘Clothing’ and ‘Footwear’ increasing 0.3% and 0.1% respectively while the upward movement in the index ‘Education’ was influenced by the rise in the fees for the CSEC examinations. The 0.2% increase in the division ‘Miscellaneous Goods and Services, resulted from increased prices for some personal care items.
The division ‘Furnishings, Household Equipment & Routine Household Maintenance’, ‘Health’ and ‘Alcoholic Beverages and Tobacco’ all recorded increases of 0.1% for November 2018. Within the division ‘Furnishings, Household Equipment & Routine Household Maintenance’, the groups ‘Furniture and Furnishings’ and ‘Tools and Equipment for House and Garden’ each increased 0.2%. The division ‘Health’ which also recorded an increase of 0.1% was influenced mainly by a 0.2% increase in the group ‘Health Services’. Lastly, the upward movement in the division ‘Alcoholic Beverages and Tobacco’ was attributed to the upward movement in the classes ‘Spirits’ and ‘Wines’.
The division ‘Transport’ however recorded a decline of 0.7% in its index for November 2018. This downward movement was mainly attributable to the “reduction in the costs for petrol and air travel.”
Notably, the other divisions ‘Communication’, ‘Recreation and Culture’ and ‘Restaurants and Accommodation Services’ had no effect on the index for November 2018.
The Inflation rate year to date is 3.5%, while the point-to-point rate (November 2017 – November 2018) and fiscal year 2018/ 2019 was 4.1% and 3.8% respectively. Individual divisions saw the following changes:
- Food and Non-Alcoholic Beverages: (0.3%)
- Alcoholic Beverages and Tobacco: (0.1%)
- Clothing and Footwear: (0.2%)
- Housing, Water, Electricity, gas and Other Fuels: (-0.8%)
- Furnishing, Household Equipment and Routine Household Maintenance: (0.1%)
- Health: (0.1%)
- Transport: (-0.7%)
- Communication: (0.0%)
- Recreation and Culture: (0.0%)
- Education: (0.2%)
- Restaurants and Accommodation Services: (0.2%)
- Miscellaneous Goods and services: (0.2%)
Disclaimer:
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.