Economy Update: Inflation Rate For July 2013

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Source: STATIN

Statin’s Consumer Price Index (CPI) report for the month of July 2013 has revealed that the rate of inflation was 0.5%. This represents an ~0.3% increase over the all time low 0.15% inflation rate for a calendar year, that was recorded for June 2013. July 2013’s rate of inflation now stands as the third lowest inflation rate for the calendar year.

diGgers an important point to note is that for July 2012 there was a deflation of 0.33%. The CPI fell by 0.6% from 183.8 in June 2012 to July 2012’s 183.2. This was as a result of a fall in the index for the ‘Communication’ division. The decline was due to major players in the Telecommunications sector Digicel and Lime battling to secure market share via call rate adjustments. Read more about the competition here.

The most significant factors that contributed to the upward movement of the inflation rate for the month of July 2013 are higher prices for ‘Fruits’ and ‘Vegetables and Starchy Foods’ The index for each group rose by 2.4% and by 1.2% respectively.

Calendar year-to-date inflation rate for July 2013 was 4.36%.  In terms of year over year comparisons, July 2013’s calendar year-to-date inflation rate is 1.6% and 1.1% higher than the 2.81% recorded for July 2012 and the 3.27% recorded for July 2011 respectively.