Prices in Georgetown remained "unusually constant" in April despite an increase in inflation of 10.1%, when comparing April 2006 to April 2007, the Bureau of Statistics said in its latest (Urban) Consumer Price Index (CPI) report.
In a press release dated Wednesday but released yesterday, the Bureau also measured the year-to-date inflation rate from December to April 2007 at 8.3%. For April, the CPI recorded an increase of 1.2%. The price index value accordingly moved from 234.8 in March to 237.5 in April.
The CPI for January and February showed an increase over the corresponding periods last year of 9.3% and 8.5% respectively, fuelled by the implementation of the Value Added Tax (VAT).
For the month of January, there was a 6.6% increase in the basket of goods and in February, there was a further 0.3% increase leading to a 6.9% increase. For December last year, the CPI showed inflation at 4.2%.
"Significantly the index for the overall food group, having declined in March remained unusually constant during the month of April," the release said.
The increase in the overall index was said to be driven by increases in the transport and communication group by 4.2%; miscellaneous goods and services by 3.1%; educational, recreational and cultural services by 1.8% and the clothing, medical and personal care groups by 1.5% each. The sub-category of tailoring with a recorded 10% increase was responsible for the overall increase in the clothing group and there was a decrease of 0.4% recorded for ready-made clothing.
The increase in the transport and communication group of 4.2% was primarily due to upward movements in the subcategories of personal transport that increased by 8.1% (due to increases in gasoline prices) and purchased transport services by 7.7% (due to increases in Airfare costs), the release said.
The next highest increase of 3.1% in the miscellaneous goods and services group was totally due to the spike in prices of personal services as denoted by an increase in the index of that sub-category of 13.6%. It was said that this was the first movement in prices for that sub-category since December 2006.
A major jump in prices for services provided at barber-shops and hair-care salons was said to have fuelled the price spike in that sub-category.
The increase in the educational, recreational and cultural services of 1.8% was as a result of a major increase of 11% in items, such as books and newspapers. Comparatively there were smaller decreases recorded of 1.9% in the sub-category education (a reduction of textbooks prices due to sales at two major outlets) and of 1.8% in the sub-category recreational and cultural services, respectively, the release said.
With regard to the price movements of the clothing and medical and personal care groups, respectively, which both recorded increases of 1.5%, it was the sub-categories recreational and cultural services respectively that accounted for the increases.
An increase of 3.8% in the sub-category of medical expenses underpinned the overall increase for the medical and personal care group.
Increases in the housing and footwear and repair groups, respectively, were both attributable to price increases in commodities/services that are significant to the lower income groups. The housing group increased by 1.1%, primarily due to an increase of 3.1% in the sub-category fuel and power as a result of increases in kerosene oil prices, whereas the increase of 0.3% in the latter group was as a result of a 5.9% increase in costs for repairs to footwear. A similar level of increase, 0.3% was also recorded in the furniture category.
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, the release said.
Sugar, honey, and related products recorded the highest increase of 3% for the month of April. There were increases in descending magnitude recorded for pulses and pulse products by 2.8%, tobacco and tobacco products by 1.7%, milk and milk products and oils and fats both by 1.2%, cereal and cereal products by 0.6%, meats, fish and eggs by 0.4% and prepared meals by 0.2%. Vegetables and vegetable products were said to have decreased by 3.5%, fruits and fruits products by 2.4%, condiments and spices by 2.1%, alcohol beverages by 0.5% and non-alcohol beverages by 0.1%.