Inflation averaged 3.3% in 2018

| 27/05/2019 | 4 Comments

Cayman News Service(CNS): A fall in the country’s inflation rate in December led to an average rate for 2018 of 3.3%, as the consumer price index fluctuate wildly last year from a high of almost 5% at the end of June to a drop to 1.7% at the end of the year. The problem of inflation continues to undermine recent claims by government of economic success. For people on low wages or fixed incomes inflation can cause real hardship. According to figures release by the Economics and Statistics Office, even in the slower quarter at the end of the year food was up 4.6%, water 5% and electricity jumped 15.4%.

While government is recognising the problem of inflation, which is expected to increase by 2.7% this year, it has few tools to control runaway prices. Finance Minister Roy McTaggart said that to help manage the impact of inflation government was leaving in place the import duty reductions implemented in the last administration.

As he delivered a financial update to the Legislative Assembly in April to support government’s strategic policy statement, McTaggart said the reduced import duty of 25¢ per gallon, down from 75¢ per gallon, on fuel used by Caribbean Utilities Company for electricity would continue.

He also said that a duty cut of 2% for licensed traders on consumer goods for retail sale would remain in place, even though there is little evidence that most merchants are actually passing on the savings.

“By keeping in place these import duty reductions, the government is doing its part to keep retail prices as low as possible,” he added.

See the latest Consumer Price Index on the ESO website

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Category: Economy, Politics

Comments (4)

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  1. Anonymous says:

    Still don’t understand how the Premier gave civic servants 5 % Cost of Living raise (last year) and the retired ones( pensioners) only 1.9 % and the last time the pensioners got a
    cost of living raise was for 2015. The pensioners law section 22 says they are to get the cost of living raise yearly.

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  2. Anonymous says:

    By keeping in place these import duty reductions, the government is doing its part to keep retail prices as low as possible,” he added.

    What he means is : to keep profits as high as possible.

    Prices in the us are a third of here. This is not caused by shipping cost. The lack of consumer protection gives retailers the option to max out the margins.

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    • Anonymous says:

      Absolutely correct. I’m sure there was a Consumer Protection Bill that was meant to come into effect a few years ago but mysteriously disappeared instead.

  3. Anonymous says:

    Aldart, since you seem not to fully understand numbers, that is the same as you cutting a Caymanian’s minimum wage from $6.00 to $5.80, all while you celebrate the booming economy.

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