Modest increase in consumer prices in second quarter

The consumer price index for the quarter ending June 2012 increased by 0.9 per cent compared to the same quarter in 2011.  

The growth was based on higher prices for clothing and footwear (5.4 per cent), food and non-alcoholic beverages (3.8 per cent) and transportation (3.4 per cent). 

The food items that saw the highest price increases during the past year were fish and seafood (10.7 per cent), oils and fats (7.9 per cent), sugar, jam, honey, chocolate and confectionery (6.7 per cent) and fruit (6.4 per cent). 

Transport costs jumped due to an increase in the average cost of transport services (5.9 per cent), vehicle purchases (5 per cent) and the cost of operating a vehicle (1.9 per cent). 

Higher prices for water supply (3 per cent) and electricity, gas and other fuels (1.1 per cent) were contrasted by a decline in actual rentals for housing by 1.6 per cent. 

The overall Consumer Price Index stood at 101.4 in June 2012 up by half a per cent from March 2012.  

The quarterly price growth was driven again by clothing and footwear (2.5 per cent), transport (2 per cent) and a sharp 5.1 per cent upward movement in the prices for electricity, gas and other fuels.  

Higher energy costs in Cayman are correlated to the general price of oil with several months delay and the second quarter surge comes in response to the higher cost of crude oil. Light sweet crude oil reached a high of nearly $105 on 27 April 2012 on the New York Mercantile Exchange, but subsequently dropped to under $80 on 22 June 2012. The current oil price is in the 
low $90 range. 

Cayman Islands CPI

Comments are closed.