1.4 per cent is the highest quarterly inflation rate since December 2008
The costs associated with living in the Cayman Islands have increased substantially in the second quarter of 2011.
Following upsurges in the price of fuel and electricity, the Cayman Islands consumer price index grew by 1.4 per cent, the highest quarterly inflation rate since December 2008, according to the latest data from the Economics and Statistics Office.
The consumer price report for June 2011 showed a significant increase in the price of energy and gas and related activities such as transportation.
The average spending for transportation grew by 13.3 per cent year on year, while the cost of electricity has surged by 23.8 per cent compared to June 2010.
During the past 12 months, the significant increase in electricity and gas prices was tempered by the continuing decline in housing rentals, the ESO said. However, on a quarterly basis, rental prices, the largest item in the basket of consumer products, remained flat, whereas the average charge for electricity grew by 8.3 per cent. Meanwhile, transportation costs grew by 5 per cent compared to March 2011. Other utilities like water have also become more expensive by 4.8 per cent for the quarter and 13.8 per cent for the year.
In the past the cost of electricity and gas in Cayman followed closely the price of crude oil on the global markets with a delay of about two to three months.
Given that the price of crude oil has decreased by 12 per cent during the second quarter and by another 8.9 per cent since, Cayman should expect a significant price drop for gas and electricity in the third quarter of this year.
Food prices increased by 1.8 per cent from March to June 2011, mainly due to the higher cost of meat (6.2 per cent) and fish and seafood (5.7 per cent).
Vegetable prices declined by 5.1 per cent during the quarter.
Communication costs increased by 3.1 per cent, despite a 10.7 per cent decline in the cost of telecommunication equipment.
Furnishings and furniture prices (negative 2.2 per cent) drove down the overall cost for household equipment (negative 0.3 per cent) in the second quarter of 2011.
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What this island needs is an alternative source of energy other than Oil. What about Geothermals? CUC is a monopoly who desperate needs some competition.
when you have a monopoly like CUC you are going to get gouged; as it what is happening now. The are not charging you what the it cost them for product, they are charging you what they need to keep shareholders happy and remain profitable.
They also can control the competition because they own the power grid, and government will not allow a renewable energy because they would lose all the income they get from fuel duties to CUC… which is a lot.
We were paying less when crude was at 140 per barrel then we are when crude is 85 per barrel.
CUC and Govt has every excuse in the book why wind or solar power will not work in Cayman!
I am curious where Cayman Compass get their information from, foor increase is 1.8 percent?? I don’t think so I would say is around 30-50% the facts proves it otherwise. On the other hand government ain’t doing anything to lower the cost of electricity; in the near future no body will be able to afford to pay their bills. Turism soon will kiss it goodbye to the Cayman Islands because is not longer safe and the cost of living is too high!
The CI government needs to force CUC to honor their renewable energy commitment by agreeing to NET metering. Here at Lighthouse Point we generate 4-5 times more solar power than we can consume during the day but can not sell back our excess carbon-free power. With Net Metering the investment into renewable energy is a win-win for all except CUC. The Sun power is FREE and the Wind power is FREE so why do we need crude oil?
The masked gunmen are not the only robbing bastards, CUC are [expletive] people big time as well ,time something was done about this ,they need to serve the people of the island and STOP lining their own pockets!!!!!!!!!!!
Agree with lots of these points. We have an abundance of natural sustainable resources, yet we do nothing with them, that is criminal. We could also power a wind farm that harnesses the gusts created when politicians speak – around election times this could power several Caribbean nations.
Cuc should show that they care by installing small wind turbines on top of some of their electrical posts. With a public internet page to view the result, everyone could be inform and CUC would be back, maybe a little, in the good grace of the peoples.
If we burn the rules that prohibit many shops opening on a Sunday, would that count as fossil fuel? How much money must CUC rake in, keeping vast expanses of supermarket food frozen/refrigerated – in effect, we are wasting so much food/electricity by not having these shops open.
Also, imagine the dream eco-tourist location, of a Caribbean island, that produces almost all of its own power. I hear that eco-tourism is pretty big now, in errr more ‘forward thinking’ places.
I think maybe the reason the sea around here is so clear, is it has a high concentration of dolphin and turtle tears* in it, weeping at the waste.
* May not be true
Pattieman is 100% correct on the green energy potential in Cayman as he is with the closing on Sundays. CUC are well know to be putting in every effort to make it difficult for individuals to go green. Without a serious change in attitude and investment then Cayman is on a slippery slope. The dying banking sector and rising crime will have it circling the drain in no time.
Myself, a renewable energy consultant, returned to Europe last year because of a lack of appetite to change on Cayman. I was shocked at the potential and amazed at the lack of interest to adapt. I’m back now doing a post grad in Energy along with delivering government training on sustainability for our government to craftsmen. A increase in interest and investment might give me scope to return to wonderful Cayman in the future .
Energy companies ROB people all over the world . They have monopolies even though they will scream that they dont . They hire people who seem to have ZERO interest in alternate forms of power since they KNOW people will NOT read by candle light . Meanwhile , Brazil and a few other bright spots are leaders in innovation and seem to be able to harness the powers of nature while laughing at the rest of the world .
Cayman should set an example and use TIDES and WIND . The technology is there . Cayman just needs someone to say … LETS TRY !!!