Price increases fuel local inflation

| 09/07/2017 | 37 Comments

(CNS): While government continues to pursue growth in the local economy and makes claims that unemployment is falling, with little sign of rising wages, price increases are now putting pressure on ordinary working families. The latest figures from the Economics and Statistics Office reveals that the consumer price index increased by 1.7% during the first quarter of this year compared to 2016.

The main contributors to this movement were the 9% rise in the index for restaurants and hotels, 4.7% for clothing and footwear, and 2.9% for recreation and culture.

Compared to the fourth quarter of 2016, the inflation rate for the first quarter of 2017 rose by 0.3%, as the indices for food and non-alcoholic beverages went up by 0.9%, transport by 0.8%, and clothing and footwear 0.7% were the main contributors to the increase.

For the first quarter only two divisions reflected a downward trend in prices, namely miscellaneous goods and services, which declined by 2.8% and health down by 0.3%.

Shoppers were hit at the start of the year with some heavy price increases for food. Seafood rose by 10% and staples such as milk and eggs increased by 5.5%, with many other food items, such as cooking oils and juices, also going up in price. However, vegetables were down by 8.8%.

See the Cayman Islands’ Consumer Price Index Report: March 2017 here .

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Category: Economy, Local News, Politics

Comments (37)

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  1. Anonymous says:

    Good. Keeps cheap fly-over states tourists away.

  2. Anonymous says:

    It’s obvious that a lot of people posting here are working for someone else and have the luxury of a guaranteed paycheck, as long as you put in the hours, while someone else has to worry about the cold hard economic realities of doing business in the Cayman Islands to make sure you get paid. Do some research, educate yourself and stop blaming your local merchants who are simply trying to survive in the same minuscule marketplace that you are. The relatively high cost of living in Cayman Is primarily driven by the logistical costs associated with supplying a very limited marketplace, but Inflation is a direct effect of “Quantitive Easing” by the U.S. Federal Reserve, and the machinations of other central banks, not some evil cabal of local merchants. The law of supply and demand will not allow a merchant to charge more than the market is willing to pay, otherwise they will simply not attract any customers and will quickly go out of business. To the foreigners visiting our islands, and complaining about prices here vs. prices in the U.K., U.S.A., etc…, while comparing us to other regional economies; I say there is a reason that you chose Cayman and you get what you pay for. I understand that you’re upset because your currency doesn’t go as far here as it does in Mexico, Jamaica, Puerto Rico or Cuba. Who the hell are we that you should have to pay so much to visit us, right? We should fall in line with the rest of the third world and bend over for that US dollar, ain’t that right? Well, sorry that this offends your sense of the natural order of things, but we have to eat too…

    • Anonymous says:

      You have not been here long have you? Everything is a cartel or monopoly…there is no other reason for it. Fuel prices are still dropping elsewhere..

    • Anonymous says:

      There is very little inflation in the US and your dollars are locked to the US dollar. Find someone else to blame.

  3. Anonymous says:

    I went to a well known beach grill/restaurant/marina on Cayman Kai at the weekend and was horrified at how the prices have shot up, the food quality has gone down, as has the quantity served, and the service levels are in free fall since my last visit.

    If wasn’t for its location on the waterfront, this once fun place to hang on a weekend deserves to be shut down as it clearly cares little for customer service or the standard and outrageous prices of its mediocre food.
    Who ever takes responsibility for this shambles should be ashamed at openly ripping off tourists in the name of high profits.

    And don’t even get me started on the whiny euro music that was playing, what happened to good old Caribbean music in the Caribbean?

    Just another Cayman rip off!

    • Just Commentin' says:

      So…did you walk out? If everyone walked out, changes would be made. I have been know to sit, enjoy my glass of water, unfold the napkin, peruse the menu…and if the prices are high in my opinion…when the server comes to take my order, I tell them the prices have gone up too high and let their manager know why I walked, then I tip the server a dollar and I walk out. Resistance is the key. Your comment on the quality of food and service tell us that you stayed and ordered. Lemming!

  4. Anonymous says:

    i bought some spark plugs from an establishment today for $9 bucks each……i went 2 milesdown the road and out of curiosity, asked for price of same plugs….theywere selling exact same plugs fir $16.80 each??? wow!?

  5. Anonymous says:

    Tickets to Miami are not normally $294, that was a special offer for a certain number of tickets. Outside of the special, the fare to Miami for the last 3 weeks has been pricing at $487. And that’s trying to book with more than 14 days advance notice. Isn’t it better to reduce the fare and fly a full plane rather than fly almost empty because fares are so high?

  6. Cassie says:

    Nothing in this island well get any better if the politicians are allowing stores to continue to raise prices. Everything is a monopoly in Cayman and the government is part of that monopoly also. They are only interested in lining their pockets and is not interested in what other people are going through. As much promises that they make, nothing is done. They are only making cayman worse. They fail to realize that cayman has no form of export we have to import everything. The future for cayman is very dark.

  7. Anonimous says:

    Can someone tell me what fuels the absurd snack bar prices at the cinema? I’m beginning to think this is nothing more than GREED.

    • Mister Greedy says:

      It’s because people are not very smart. If they didn’t buy those “snacks”, the prices would quickly drop. Yeah, I know…….. people will not quit buying them.

    • Anonymous says:

      supply and demand – there’s no other cinema so they can price what they want. Also American visitors pay about the same in the states so it isn’t a shock to them. As for locals, pretty sure they don’t want them there anyway.

    • Anonymous says:

      That’s why I bring my own! Gotta love a large handbag!

  8. Anonymous says:

    Until international competition is introduced onto these islands the local providers will keep making outrageous profits at our expense.
    Get into the 21st century Cayman, this blatant profiteering is criminal and should be stopped by government legislation.

    • Anonymous says:

      True. Majority Cayman ownership requirement when virtually 100% of Capital and manpower input is from expat sources results in doubling ROI requirement and the resultant price increases. This is not greed, but economics.

  9. Kman says:

    Simply put get back to the basics of growing your own crops, raising chickens and that will reduce cost, introduce Duty Free Zones to attract businesses and create jobs. Also allow renewable energy sources to stiffle CUC chokehold, make Cayman Airways a low cost carrier, increase salaries to go inline with rate of inflation, basic minimum wage of $10 an hour and have Lidl and Aldi to enter the local market they have a huge supply chain and they are great in buying only local produce.

    • Mister Greedy says:

      Dream on, Kman. The love of money is the prime mover in the Caymans….. just like everywhere else.

    • Anonymous says:

      two problems with your statement. if you make cayman airways a low cost carrier. that means government subsidies. And two you raise the minimum wage. What do you think happens to the goods that the stores sell? ya…you get quicker hyper inflation. You know fosters isn’t going to increase their salaries and say “oh well, just have to take one for the team” no, they are going to raise the prices on everything. So in 5 years time, your 10 dollar an hour raise, basically is no different than the 6 dollars your making with the current prices now.

      And that wage increase means EVERYONE will get in on the price hike, Rent, electricity. ect.

      • Anonymous says:

        No-one said to make Cayman Airways low cost carrier, but rather a REASONABLE cost carrier. On what basis can you justify $500 economy tickets for a 1 hour flight…. and then have to fly the plane virtually empty because fares are so high? Every time fares are reasonably priced its standing room only.

    • Anonymous says:

      Are you living in Cayman OR Utopia???

  10. Anonymous says:

    Yet when it’s time for a raise the same Government will say that there was no cost of living increase and the companies will not give raises because of it.

  11. Anonymous says:

    Let us all get this straight , this place is out of control with ridiculous prices.

    • Anonymous says:

      Definitely 9.34pm. As beautiful as the Cayman Islands are, its ridiculously expensive in all aspects. It’s driving tourists away to other Caribbean islands for vacations that’s why Brits avoid the place. The majority of visitors are from the US because of it’s close proximity. The only thing you have cheaper than the UK is your gas for vehicles. I know importation rises prices but hey, how about starting to manufacture certain things, thus have more jobs for Caymanians in the process. However, I do see you have a problem in this field due to the lack of space on the island for factories, but many countries in this world are in the same boat and they keep their prices low. You totally rely on tourism, let’s not be too greedy. Your attraction to me and all visitors is the beauty of these islands. Unfortunately, I can’t say the peace and tranquility anymore with the escalating crime. Please Cayman lower your prices!!

      • Anonymous says:

        As a business owner we would honestly love to lower our prices, but please understand that our costs are rising also: government and licensing fees, new regulations, rent, fuel prices, increase in pension cap, etc.

        It has to come from somewhere. There are only a few groups making most of the money on island and, other than lawyers and accountants, its mainly due to real estate construction and development

        • Anonymous says:

          People bitching about prices here are forgetting they don’t pay income tax. Merchants pay all of their tax in advance. No write offs. No breaks. You pay your duty/tax before you ever open your door to try to sell products. This is a free market economy. There are no sectors that make exorbitant returns other than maybe Coke and weed. If you dont want to pay our consumption tax, stop consuming.

      • Anonymous says:

        Prices are actually not driving the tourists away. Cruise and stayover have both been at record levels. Cayman is no more than expensive than it always has been for US tourists. The Brits problem is the pound dropping against the dollar and no nonstop flights.

    • Anonymous says:

      And DEEP, DEEP pockets!

  12. Anonymous says:

    It is cheaper to fly to Miami and go shopping than to buy on Island. I paid US $294 for a ticket to Tampa. I just came back from Marshalls with two hushed bags of clothing that cost me $154, including tax.

    • Anonymous says:

      It isnt’t cheaper if you only buy $5 clothes on island and not expensive name brands.

    • Anonymous says:

      So the clothing actually cost you US$448 PLUS hotel/food/transport/etc costs. Still feel it was less expensive?

    • 345Sunshine says:

      How is it cheaper when you have to book a hotel + rent a car? Just curious. Do the maths, you would also not be contributing to our economy.

      • Anonymous says:

        No one should be forced to contribute to an economy which has exuberant prices for products and services. Supply and demand, if the price of products get too high people look else where for cheaper prices. To say one should contribute to the economy is saying one should be a slave. Demand and prices for products and services have a correlational relationship.

      • Anonymous says:

        You don’t have to stay over. Day trip.

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