Year-over-year inflation hits 26.2%

Published: Wednesday August 20, 2008

Consumers paid more than 25 per cent more for their goods last month when compared to the same month last year as rising energy cost continued to drive up the price of essential items in the inflation basket.

Prices rose by 2.8 per cent during the month of July 2008 according to the latest consumer price index (CPI) issued by the Statistical Institute of Jamaica (Statin).

Higher electricity and transportation costs mainly drove up inflation during the month as rising gas prices continued to push up energy cost.

The 'transport' category measured a 9.9 per cent increase in prices during July, while housing, water, electricity, gas and other fuels went up by 6.9 per cent. Combined the two categories contributed to just under 75 per cent of the overall increase measured across the items in the inflation basket.

Food prices continued to rise - up 1.2 per cent during the month - which due to its heavy weight in the inflation basket - making up 37.4 per cent - contributed to 15 per cent of the increase in overall prices.

Other categories saw marginal increases in prices and make up a smaller proportion of the inflation basket, such as furnishing, household equipment and routine household maintenance which went up by 1.9 per cent in July but contributed three per cent to the overall increase in prices.

Rural areas took the biggest hit in price adjustments - 3.5 per cent - while the Greater Kingston Metropolitan area saw prices go up by 1.6 per cent. Other urban centres experienced headline inflation of 3.4 per cent.

The 2.8 per cent increase in prices during the month of July pushed the rate of inflation for the calendar year to July to 14.7 per cent and fiscal year to date inflation to nine per cent.

Point-to-point inflation of 26.2 per cent was recorded for the period July 2008 when compared to July 2007.


Source: Jamaica Observer
http://www.jamaicaobserver.com/magazines/Business/html/20080819T230000-0500_139252_OBS_YEAR_OVER_YEAR_INFLATION_HITS_______.asp