January CPI declines on back of reduced JUTC fares, lower prices for agricultural produce

Source: Jamaica Observer

KINGSTON, Jamaica - Lower bus fares paid by passengers of the State-owned Jamaica Urban Transit Company (JUTC) and lower prices for some agricultural produce have resulted in the All Jamaica Consumer Price Index (CPI) declining by 0.1 per cent for January 2024.

The Statistical Institute of Jamaica (STATIN) says the downward movement was influenced mainly by a 0.7 per cent decline in the index for 'Food and Non-Alcoholic Beverages'. It said the main contributor to the decline in the division's index was a 0.8 per cent fall in the index for the 'Food' group resulting from lower prices for agricultural produce such as yam, Irish potato, cabbage, carrot and tomato due to increased supplies.

"Also contributing to the decline in the January 2024 CPI was a fall of 1.1 per cent in the index for the 'Transport' division as a result of a reduction in the bus fare for adults charged by the JUTC and lower fuel prices," STATIN said.

On the flip side, it said the movement in the CPI was moderated by a 0.8 per cent increase in the index of the 'Housing, Water, Electricity, Gas and Other Fuels' division due to higher electricity, water and sewage rates. In addition, the index of the 'Recreation, Sport and Culture' division rose by 1.5 per cent due largely to higher admission fees for cinemas and stage shows.

Meanwhile, the point-to-point inflation rate (January 2023 - January 2024) was 7.4 per cent. This was influenced mainly by the point-to-point inflation rate for the divisions: 'Food and Non-Alcoholic Beverages' (8.9 per cent), 'Transport' (9.5 per cent) and 'Housing, Water, Electricity, Gas and Other Fuels' (4.6 per cent). For the Fiscal year- to-date the inflation rate was 7.3 per cent, while the calendar year-to-date as of January 2024 was 0.1 per cent.

The CPI measures changes in the general level of prices for consumer goods and services purchased by private households.