Spikes in costs across all levels of education pushed Cayman’s inflation rate upwards during the first quarter of the year, according to the latest data from the Economics and Statistics Office.
Cayman’s Consumer Price Index for January to March 2024, which was released on Tuesday, showed that education had registered the highest overall increase in cost for all categories at 7.9%, pushing the CPI to 132.5, 1.5% higher than last year for the same three-month period.
“The increase in this division’s index can be traced to the 10.9% increase in the cost of secondary education. In addition, the index for pre-primary and primary education and tertiary education went up by 7.5 and 6.3%, respectively,” the report stated.
Last year, during the same period, the education price index grew by 2.3% with the average secondary and preprimary education costs increasing by 5.9% and 1.5%, respectively.
Compass columnist Simon Cawdery, in an overview of the education system last year, looked at the increasing cost of schooling in Cayman, and whether there was value for money.
Schooling in the Cayman Islands has also become quite competitive as parents vie for limited spaces, resulting in the growth of new schools.
While education showed the highest rise in the first quarter, it was not the only division to show a spike in costs.
Most divisions record increases
In fact, 10 out of the 12 divisions being monitored recorded higher price indices.
A 26.4% increase in the price of glassware, tableware and household utensils drove an overall 3.5% rise in the furnishings, household equipment, and routine household maintenance category.
The report also pointed to a 13.1% increase in the cost of small electric household appliances, as well as non-durable household goods (10.5%) and small tools and miscellaneous accessories (5.2%).
However, declines were reported in household textiles, major household appliances, furniture and furnishings, and repair of household appliances of 7.7%, 3.4%, 1.7% and 0.3%, respectively, compared to the same quarter last year.
A 12.2% increase in the price of materials for the maintenance and repair of dwellings pushed the housing and utilities division index up with an overall 2.6% increase.
“Actual rentals paid by tenants also went up with an 11.1% increase, while imputed rentals for owner occupiers increased by 2.9%,” the report stated.
Gas (LPG/propane) rose by 0.7%.
However, when it came to the index for electricity, water supply and services for the maintenance and repair of the dwelling, there were declines of 7.5%, 5% and 3.3%, respectively.
Rising health costs
As for health costs, there was a 2.5% rise in the CPI for this division which the report attributed to a 5.4% increase in the price for pharmaceutical products. Dental services increased by 5.1%, with other medicinal products declining by 4%. Therapeutic appliances and equipment went up by 2.3% while medical, hospital and paramedical services remained the same.
Food and non-alcoholic beverages increased by 1.1%, mainly due to the 9.5% rise in the average price of other food products not elsewhere specified.
“In addition, the index for oils and fats (8.9%) also experienced an increase. Sugar, sugar confectionary and snacks had an upward movement of 5.9%. In comparison to the same quarter in 2023 the prices of mineral waters, soft drinks, fruit and vegetable juices (5.5%), tea, coffee and cocoa (2.1%), vegetables (2.4%), fish and seafood (0.4%), bread and cereals (0.7%) and meat & meat products (2.9%) all went up,” the report stated.
The indices for fruits, and milk, cheese and eggs declined by 3.9% and 9.9%, respectively.
The transport division recorded a 2.7% decrease due to a “significant decline in the index of passenger transport by air by 13.1%”.
Personal transport equipment also contributed to the downward movement of this division’s index with a 7.2% decrease.
“The price of fuels and other purchased transport services declined by 3.1 and 4.5%, respectively. In addition, maintenance and repair of personal transport equipment went up by 7.3%. Purchase of motor vehicles (8.6%) and spare parts and accessories for personal transport equipment (4.3%) both increased this quarter alongside passenger transport by road (1.6%),” the report stated.
In addition, when comparing the first quarter of this year with the final three months of 2023, the CPI rose by 0.03%, with the rise of indices including communication by 5%, education by 4.4%, clothing and footwear by 1.8%, and recreation and culture by 1.7%.
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