THE Bureau of Statistics has reported that following the slowdown in the rate of price increases observed during February and March, where the Consumer Price Index (CPI) increased by less than half a percentage point in each of those months, there was an increase of 1.2 per cent in the level of prices of the consumer items monitored in the urban (Georgetown) CPI basket of goods and services for last month.
The price index value, accordingly, it said, moved from 234.8 in March 2007 to 237.5 in April. As such, the year to date interaction rate from December 2006 to April 2007 was measured at 8.3 per cent. On an annual basis, that is when, comparing April 2006 to April, 2007, the Urban (Georgetown) index rose by 10.1 per cent.
The bureau said that, significantly, the index for the overall food group, having declined in March, remained unusually constant during the month of April.
It said the increase in the overall index was therefore driven by increases in the transport and communication group of 4.2 per cent; miscellaneous goods and services by 3.1 per cent; educational, recreational and cultural services by 1.8 per cent and the clothing and medical and personal care groups by 1.5 per cent each.
Accounting for the increase in the transportation and communication group of 4.2 per cent, the bureau said this was primarily due to upward movements in the sub-categories, operations of personal transport by 8.1 per cent (due to increases in gasolene prices) and purchased transport services by 7.7 per cent (due to increases in air fare costs).
The next highest increase of 3.1 per cent in the miscellaneous goods and services group was attributed “totally to the spike in prices of personal services” as denoted by an increase in the index of that sub-category of 13.6 per cent.
“Interestingly”, the bureau noted, “it was the first movement in prices for the sub-category since December, 2006.” It contended that, essentially, it was a major jump in prices for services provided at barber shops and hair care salons which fuelled the price spike in that category.
The increase in the educational, recreational and cultural services group of 1.8 per cent was as a result of a major jump of 11.0 per cent in items prices within the sub-category – books and newspapers. This, the bureau said, completely nullified the comparatively smaller decreases recorded of 1.9 per cent in the sub-category education, reduction of text books prices due to sales at two major outlets, and of 1.8 per cent in the sub-category recreational and cultural services, respectively.
With regard to the price movement of clothing and medical and personal care groups, respectively, which both recorded increases of 1.5 per cent, the bureau said it was the sub-category of tailoring, which recorded a 10.0 per cent increase, that was responsible for the overall increase in the clothing group, offsetting the decrease of 0.4 per cent recorded for readymade clothing.
An increase of 3.8 per cent in the sub-category of medical expenses underpinned the overall increase for the medical and personal care group.
Increases in housing and footwear and repair groups, respectively, were both attributable to price increases in commodities/services that are significant to the lower income group, the bureau reported.
It said the housing group increased by 1.1 per cent, primarily due to an increase of 3.1 per cent in the sub-category, fuel and power, as a result of increases in kerosene oil prices, whereas the decrease of 0.3 per cent was also recorded in the furniture category.
The bureau cautioned that the observation must be made that although the overall index for the food group remained constant for the month of April, there was a mix in the movement of prices among the various sub-categories within the group.
Sugar, honey and related products recorded the highest increase of 3.0 per cent for April, with increases in descending magnitude recorded for pulses and pulse products by 2.8 per cent; on tobacco and tobacco products by 1.78 per cent; milk and milk products and oils and fats by 1.2 per cent; cereal and cereal products by 0.6 per cent; meat, fish and eggs by 0.4 per cent, and prepared meals by 0.2 per cent.
The bureau said these increases were totally nullified by decreases in the prices of vegetables and vegetable products by 3.5 per cent; fruit and fruit products by 2.4 per cent; condiments and spices by 2.12 per cent; alcoholic beverages by 0.5 per cent and non-alcoholic beverages by 0.1 per cent.