CPI Records 2.8% Growth in the Third Quarter reports Cayman ESO

Monday, 06 January 2014 13:38

The Consumer Price Index (CPI) for the third quarter ending September 2013 rose by 2.8 percent compared to the quarter ending September 2012.

GRAND CAYMAN, CAYMAN ISLANDS, CAYMAN ISLANDS, January 5, 2014 /EINPresswire.com/ — The Consumer Price Index (CPI) for the third quarter ending September 2013 rose by 2.8 percent compared to the quarter ending September 2012.

“This is the highest inflation rate since December 2008,” stated the Hon. Minister for Finance and Economic Development, Mr. Marco Archer. “A few items showed sharp price increases such as tobacco products and health insurance,” he further noted.

Average prices for tobacco products rose 49.2 percent resulting largely from the 100 percent increase in duty in effect from September 2012.

The average premium for health insurance was 59.6 percent higher compared to the same period in 2012, in view of higher benefits as well the introduction of payments towards an indigent fund.

“We are closely monitoring these price changes. It is expected, however, that the inflation rate for these items will normalize in the future quarters; that is, the annual impact of the factors causing the increases will taper off,” Minister Archer further explained.

Consumer Price Index update provided by the Cayman ESO http://news.eso.ky.

Tobacco products received a duty increase of 100% in September 2012 resulting in a 49.2% price rise for the year, whilst the average premium for health insurance was 59.6% higher compared to the same period in 2012. This was because of additional payments being made towards benefit expansions and an indigent fund.

EDITOR:

There were also increases to electricity, gas and other fuels (4.7%), clothing and footwear (av. 4.4%), hotel room rates (15.2%), education tertiary tuition fees (12.5%) and education from pre-primary to secondary (3.2%).

If it hadn’t been for the drop in housing rentals, showing the decline in the economic growth in our country, the price index would have been much higher.