Topic: Inflation
Local inflation projected to rise to 5.3% this year
Projections by the Economics and Statistics Office indicate that inflation in 2026 is expected to rise to 5.3%, more than four times higher than last year.
2025 inflation steady but Iran War expected to increase 2026 prices
The latest figures from the Economics and Statistics Office show that 2025 inflation came in at 1.2%. Yet with the Iran War energy price shock already impacting prices in Cayman analysts expect inflation to rise in 2026.
Cayman’s grocery bills keep rising, even as inflation slows
In Cayman, even when inflation appears to be under control, grocery bills continue to climb, putting ongoing pressure on monthly budgets.
Falling transport and utilities help slow Cayman inflation
Third-quarter data from the Economics and Statistics Office reveals rising inflation is being tempered by lower water and electricity prices.
Inflation up despite utility bill drop
The latest inflation numbers were mostly bad news for Cayman’s consumers, with prices across the island still rising.
Egg prices hit record high as Cayman works to expand local supply
Eggs prices are at a record high in supermarkets in the Cayman Islands, but there are signs that prices may be starting to stabilise.
The Fed dual mandate
With the risk of stagflation fading, with not much stagnation and not much inflation, the market is overwhelmingly betting that the Fed will decide to cut rates in its 17-18 Sept. meeting.
Consumer prices up slightly in second quarter
Inflation in Cayman ticked up slightly in the second quarter on rising costs in communications and education, according to the latest data from the Economics and Statistics Office.
Rise in education costs fuel inflation in first quarter
Spikes in costs across all levels of education pushed up Cayman's inflation rate during the first quarter of the year, according to the latest data from the Economics and Statistics Office.
More families seek help from Cayman Food Bank
Clutching her young son with one arm and a shopping bag with the other mom Jane waited in line for the Cayman Food Bank to open to get her supply of food items to take her through the week.
Proposed minimum wage increase only 16%, according to government figures
The proposed increase in the national minimum wage would make the country’s poorest households only around 16% better off despite looking like a 46% rise, according to Cayman’s leading economist.
Growing demand puts pressure on Meals on Wheels
While government considers the recommendation to raise Cayman's minimum wage to $8.75, organisations like Meals on Wheels are feeling the pressure of increasing demand for food support in the face of inflation and stagnant earnings.
Furniture, fuel, and transport costs drive inflation in 2023
Shoppers had to dig deeper into their pockets for household furnishings and food last year, as costs of these and other items drove the average consumer price index 3.8% higher than in 2022.
Year in review: Christmas dinner more expensive this year
The financial strain that many in the Cayman Islands felt after having faced record inflation in 2022 did not relent in 2023 as interest rates and the cost of living continued to trend upwards adding to an already difficult economic climate.
Cayman’s economic growth to slow in 2024, says premier
The growth of the Cayman Islands' economy is likely to slow in 2024 but will remain steady in the following several years, Premier Juliana O'Connor-Connolly has said.
Fuel prices rose by nearly 30% in 2022
Inflation in the Cayman Islands hit record levels in 2022, with core inflation peaking at 7.4% and consumer prices rising to a historic high of 9.5%, based on data released by the Economic and Statistics Office.
Inflation drops to 4.1% in second quarter of 2023
Consumer prices in the Cayman Islands during the second quarter of 2023 were 4.1% more than the same period in 2022.
Marketwatch: Navigating by stars under cloudy skies
Only time will tell how effective the US Federal Reserve (Fed) has been in fighting inflation.
Analysis: As prices soar, will employers raise wages?
Soaring rents and supermarket prices have led to a real-term pay cut for many, with employers slow to adjust salaries and hard-up workers having to move jobs or even jurisdictions in search of higher pay.
Inflation still high at 6.6% for first quarter
Consumer prices rose again in the Cayman Islands during the first quarter of 2023 to 6.6% more than the same period in 2022 and 2.1% more than last quarter.
Rotate, don’t retreat!
It’s that time of year again when investors may be curious as to whether the adage “sell in May and go away” should be implemented in the current market environment.
US inflation data points to more interest rate hikes
US consumer price growth continued to decline marginally on an annual basis in January to 6.4%, down from 6.5% in December 2022.
Consumer prices up 9.2% in the third quarter of 2022
The Cayman Islands consumer price index (CPI) increased by 9.2% in the third quarter of 2022, compared to a year earlier.
Year in Review: $8 lettuce anyone? 2022 was a year of record inflation
If 2022 needs something to be remembered by it may well be the pack of butter that sold for $20, $8 lettuces or petrol prices so high, that many left service stations with their car tanks only half-filled.
Construction industry reeling from costs increase
Local developers say they are struggling to keep up as global construction prices climb. While some are able to absorb the increased costs, others are facing the prospect of having to pause projects already under way.
US increases rates by a half-point as inflation trends lower
The US Federal Reserve has raised its policy rate by another half percentage point on Wednesday.
The Fed left standing alone
Central banks have been on overdrive to clamp down on inflation. So far we have witnessed the largest and fastest tightening in a century, bringing bond yields back to near 20-year highs.
$7 lettuce here; £88 honey there
Just read about the $7 lettuce. What a shock. Hard to believe, even though you never expect to be shocked by the prices of...
US inflation in October lower than expected
US stock markets and government bonds surged Thursday on news that US consumer prices increased by just 7.7% in October.
My mortgage has doubled and a lettuce costs $7, what’s going on?
A combination of rising costs on key essentials, like food, housing and electricity and sharp rises in the cost of borrowing are fuelling a mounting cost-of-living crisis. We investigate what is happening and why.
Inflation is broadening beyond food and energy
While double-digit inflation rates in OECD countries are predominantly caused by the high cost of energy, consumer prices excluding food and energy continued to increase in September.
US interest rates raised by another 0.75 percentage points
The US Federal Reserve has raised its benchmark policy rate by 0.75 percentage points for the fourth consecutive time this year in its battle against higher consumer prices.
Businesses fight to keep the lights on as costs rise
Low unemployment and a post-COVID recovery suggest a rosy picture for Cayman’s business community. But rising costs – particularly for shipping, electricity and labour – have wiped out profit margins and stunted the economic comeback.
Revisiting the 60/40 portfolio
The traditional 60/40 portfolio, where 60% is invested in stocks and 40% in bonds, is often considered the asset allocation bedrock for investors who can take a bit of volatility but still want to protect principal and grow capital over time.
Consumer spending on life support?
Consumer confidence has taken a hit this year amid the highest inflation in a generation which will likely force consumers to cut back on discretionary purchases and big-ticket items.
Local prices to stay high as US inflation rate exceeds forecast
Consumer prices increases in Cayman are likely to remain elevated in the third quarter after US inflation data was higher than forecast in August.
The journey from peak inflation
The path back to 2% inflation is a difficult one for policymakers.
Record inflation of 12.1% rocks consumers in the second quarter
The cost-of-living crisis continues unabated as consumer prices increased on average by 12.1% between April and June compared to the same period last year.
From one policy mistake to another
Most central banks have committed to fighting inflation, but concerns are rising that these efforts will tip the global economy into a recession.
Investment managers drop equities, hold cash
Large investors have slashed their allocations to equities to the lowest level since the 2008 financial crisis and hold more cash than in the last two decades.
US inflation again higher than expected at 9.1%
US consumer prices, widely expected to be flattening, have surprised for the second consecutive month with a larger than expected monthly increase of 1.3% in June.
Inflation rises further to 9.6% in OECD countries
There is no sign of easing pricing pressure as inflation worldwide continues to rise.
Rising cost of living a factor in pension holiday extension
As Deputy Premier Minister Chris Saunders advised the public of cabinet's decision to extend the pension holiday extension to September he warned inflation will continue to rise.
Booms, busts and inflation
As the pandemic receded, it was hoped that the shift from buying durable goods to travel and leisure activities would help to bring inflation back down, but instead we have seen goods inflation remain high and rising prices are now spreading to services.
McTaggart calls for suspension of fuel import duty
Opposition Leader Roy McTaggart has called for a complete suspension of the import duty on fuel, at least until the end of the year, to help drive consumer costs down at the pump.
Opposition calls for reduced duty on gas, higher stipends
Opposition leader Roy McTaggart has called on the government to respond to high inflation by helping the public with their utility bills, tackling gas prices and increasing the stipends for those entirely dependent on financial assistance.
TIPS for beating inflation
Treasury Inflation Protection Securities are one of the vehicles to keep up with rising prices.
Consumers hit by 11.2% overall price increase in 2022
Higher utility and housing costs have pushed up consumer prices by 11.2% in the first quarter of this year.
You don’t know what you’ve got until it’s gone
Nicholas Rilley
The global economy has shifted from a multi-decade backdrop of oversupply to one of shortages as a result of the pandemic. Between 2000...
How investors can protect against inflation
A common topic among investors is how to protect asset values and incomes while inflation is rising.
Inflation in OECD area hits 7.7% in February
Year-on-year inflation in the OECD area has jumped from 1.7% in February 2021 to 7.7% in February 2022.
Rampant inflation of 7.6% at the end of 2021
Cayman Islands residents saw average price increases of 7.6% in the final quarter of last year compared to the same period in 2020.
Summer heat and fuel prices to drive up electricity bills
Consumers are going to face a double whammy of rising fuel costs and higher electricity consumption in the hot summer months, Cayman’s electricity provider CUC has warned.
OECD warns war in Ukraine undermines global recovery
The OECD estimates global economic growth will be more than 1 percentage point lower this year because of the conflict.
Cayman to face unrelenting price pressure for the foreseeable future
Cayman's consumer prices are likely to remain higher for longer, as the the islands’ most important import market, the United States, reported 7.9% annual consumer price inflation in February.
Engineering a soft economic landing from inflationary shock
While high inflation is a better way of paying the COVID bill than high unemployment, it is painful and particularly so for those on low or fixed incomes.
Surviving on a stipend: Cayman’s cost-of-living concerns ‘unmanageable’
Low-income workers and those surviving on a stipend have been hit hardest by dramatic price increases on food, rent and gas as Cayman's cost-of-living soars.
Special report: Cost-of-living soars in COVID’s aftermath
Cayman residents are facing a triple whammy of rising prices on fuel, food and rent, with the cost-of-living rocketing as the island looks to rebound from COVID-19. In a special report today we look at how inflation is impacting everyone in Cayman in the aftermath of the pandemic.
The issue explained: Why is inflation so high?
Generally, economists blame increased inflation on a combination of soaring demand and various supply issues following the COVID pandemic’s impact on global trade.
Transitioning away from ‘transitory’ inflation
While the pressure on prices is evident in most developed economies, the threat of a new, more serious, variant of the virus may cause central banks to postpone plans to raise interest rates until a clearer picture emerges.
US inflation to impact Cayman’s consumer prices
US consumer prices, a bellwether for prices in Cayman, increased by 7% in December 2021 from a year earlier.
Annual inflation up 6.2% last quarter
Consumer price inflation returned to the islands with a vengeance in the third quarter, after one year of flat or falling overall prices.
The Economics and Statistics Office reported that consumer prices increased by 6.4% on average, compared to the same period a year ago.
Post-pandemic – inflationary bubbles and busts
Peter Goodall
As we emerge from the pandemic, global markets continue to struggle to reach supply/demand equilibrium. Lumber futures jumped 538.64% from the March 2020...
Construction costs: US lumber prices finally fall
Lumber prices, an important element of property construction costs, dropped 40% in June – the biggest monthly fall on record in the US markets..
Did the Fed just kill the reflation trade?
Predicting the future is hard, especially when it comes to the potential persistence of inflation and the appropriate monetary policy response in the latter stages of a global pandemic.
Planning for higher inflation
Inflation expectations just reached their highest levels in a decade and that has some investors on edge.
Food and beverage more costly than a year ago
Food and non-alcoholic drink prices have increased by 6 percent compared to a year ago, according to the most recent Consumer Price Index report.
Rents rise nearly 20% within a year
Tenants will already have noticed the hit to their bank accounts, as the latest rental cost figures from the Economics and Statistics Office show a 19.7% increase in rents during the first quarter of this year compared to the same period a year earlier.
EDITORIAL – Seek solutions as cost of living continues to rise
What, if anything can be done? The answers, while imperfect, remain largely unchanged.
Food prices rise as inflation reaches 3.3%
Although the inflation rate to dropped to 1.7% in the fourth quarter of 2018 compared to the same period in 2017, general price increases of 4.8% in the second and 3.5% in the third quarter meant that inflation kept pace with the forecast economic growth for the year.
EDITORIAL – Inflation: The silent pickpocket
Recently released statistics on inflation may have come as no surprise to Cayman Islands residents whose wallets lately have seemed a bit lighter.
Prices of goods and services continued to increase in Q3
The average price of goods and services in Cayman increased by 3.5 percent in the third quarter of 2018 over Q3 of 2017, according to recently released data from the Economics and Statistics Office.
