Cayman: Consumer prices increased on average by 3.3% in 2021 | Loop Cayman Islands

The content originally appeared on: Cayman Compass

Driven by electricity rates which went up by 26.5%

Loop News

1 hrs ago

The average annual Consumer Price Index (CPI) rose by 3.3 per cent in 2021 compared to a year ago. Following a decline in the first quarter of 2021 of 1.0 percent, there were increases in the last three quarters of 2021: 0.2 percent in the second quarter, followed by 6.4 percent in the third quarter and 7.6 percent for the last quarter.

The 3.3 percent overall average inflation rate in 2021 is traced to the price uptrends in all of the twelve divisions. The highest average inflation rates were estimated for miscellaneous goods and services (5.0%), transport (4.4%), food and non-alcoholic beverages (3.8%), communication (3.7%), health (3.5%), clothing and footwear (3.9%), housing and utilities (2.9%), and restaurants and hotels (3.7%).

The Consumer Price Index (CPI) spiked by 7.6 percent in the fourth quarter of 2021. The transport division recorded the highest average price movement in the CPI basket (14.6%). This was due mainly to the 27.6 percent increase in the cost of fuel, other services in respect of personal transport equipment, up by 15.8 percent and purchase of motor vehicles, up by 12.3 percent.

The index for housing and utilities moved up by 11.5 percent in the fourth quarter of 2021. The main contributors to this increase were electricity rates went up by 26.5 percent, and water supply by 13.1 percent. Additionally, actual rentals paid by tenants and imputed rentals for owner-occupiers increased by 5.1 percent and 10.7 percent.

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