Inflation soars to record level of over 12%
(CNS): The consumer price index (CPI) increased by 12.1% in the second quarter of 2022 when compared to the same period in 2021, according to a release from the Economics and Statistics Office. The CPI was also up by 2.2% on the already recording-breaking levels of inflation for the first quarter of 2022.
Eleven of the twelve CPI divisions used to measure inflation recorded increases in average prices during the second quarter, with the largest increase (19.2%) for housing and utilities.
This was largely due to the rising cost of water supply (up by 37.3%), electricity (up by 20.2%), and imputed rentals (the amount homeowners would pay to rent accommodation equivalent to the home they own) which rose by 22.4%. Maintenance and repair of dwellings cost 11.2% more, and rent paid by tenants went up 10.8%.
People were also paying 17% more for transport due to a 37.3% rise in the cost of fuel. Buying a vehicle cost 13.4% more, and buying an airline ticket went up by 11.3%. Food and drink prices rose by almost 8%, with vegetables alone rising more than 13% on last year. Communication costs, such as internet and phones, were up 6.6%.
The latest cost of living statistics also show the rapid pace of inflation, given the jump of 2.2% since the end of March. During this three-month period, the cost of food has gone up a further 4% overall, with meat rising by almost 10%, making it increasingly challenging for families to make ends meet.
Although the government is attempting to soften the blow with measures such as CUC subsidies, free school meals and its cost of living support campaign, it has warned that things are likely to get worse.
Premier Wayne Panton said last month, “We are undoubtedly going through one of the most challenging times in recent history and we, as a government, but also each of us in the community must prepare for the possibility that it may be some time before it gets better.”
See the full CPI report here.
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1. Reduce duty on imports. Ensure companies pass onto customers.
2. Margin controls for essential services. Power, water has oversight. Add grocery’s and DIY to this. Pigs are getting greedy. The Oligopolies have to much power.
It is time for a retroactive tax on the wealthy Caymanian families that control the Business Oligopolies and in some cases Monopolies. These families have benefited disproportionally from Cayman. It is time to return some wealth back to other Caymanians. In most cases the current generation are not the founders of these businesses but the beneficiaries.
This is just the beginning, unfortunately.
Many modern agricultural inputs such as artificial fertilisers and other chemical inputs have trebled in prices over the past 3-5 months.
In some cases these are not even available.
Many crops have at least a 3-6 month cycle.
You get the gist…..
In summary, the most expensive place in the world to live just got more expensive while prices are still climbing.
For years this model where the rich get millions in concessions while the average Joe pays high duties on everything to close the gap has failed.
This only fuels the divide between rich and poor but somehow successive governments have failed to address this.
One day soon people will be desperate enough to just take what they want/need.
Only someone who never worked anywhere else in the world and paid half their salary in taxes would think Cayman wad the most expensive place in the world to live! And our duty is only the same as VAT in most of the world.
Grew up in Cayman and now live in the UK. Even with taxes, my pound goes much further than my tax-free dollar expenses on the island.
My small business just started using Vat this last year as we have grown much faster and bigger than could be imagined on Island.
Unlike the equivalence you try to make, I get a nice return at the end of the year using VAT, further offset by my local spending and product/services that apply.
No break or returns when I have to buy something on the island. I pay for said item,shipping(international rates) then duty. My total dollar spend always comes in much higher than the pound for the same or better product in the UK market.
In my experience, after working in Cayman, Europe, and the UK, Cayman is the most expensive with the least to offer.
It has the least to offer I agree but VAT to the UK consumer is 20% so comparable to our duty and payable on services. Theres only so much you can spend on overpriced goods and services in Cayman if that was more than paying half your income in tax and NI then good for you, not for anyone making 50k+ I would guess.
Wrong. The cost of living in Cayman is crazy.
One can look to history to see what happens to economically unblanced societies.
Same everywhere, stop ranting as if this is unique to cayman
With the next nearest quarter on quarter increase 200% more than that of alcoholic beverages & liquor (which went down) as well as the Govt going ahead with the new prison plans it’s not too hard to figure out what’s going on, – Govt proding and anticipating society in Cayman to accelerate a downward spiral 🌀 ⬇️
The United States rapidly escalated funding for police and for profit prison construction is escalating.
The increase in prisons is good for business in the states. The U.S. Constitution bans involuntary servitude, but prisoners are “employed” by industries for lower wages than Cayman’s minimum wage.
How do “imputed”rents go up by 22% when actual rents went up only 11%?
Imputed rents are a funny thing. It essentially ask a home owner what he could change if he/she/it (corporate) would have achieved in rent in if it were rented. It’s not a property held for the rental market and so it not like you can mark it to market very easily. Maybe they’ve looked to the median home value and put a rental figure equivalent on that and in the median say $500,000 that rental amount has largely increased whereas the more measurable rents figure which includes both the low, median, high end rentals has only moved 10% because the lower end of the market usually doesn’t increase as fast as the other parts of the spectrum. Myriad of factors for that such as lower disposable incomes of tenants (low income spectrum), less maintenance costs(disrepair), less insurance and finance charges etc. Just my opinion/guess
Got it. Should be imaginary rent or imitation rent like guns. I understand there is an economic theory behind imputed rent, but one wonders if is rational to plug this largely suspect number into GDP.
Increase in housing costs up 22%.
Basic 2BD condos at over CI$400psf to buy existing properties.
The housing bubble is insane and cannot solely be blamed on external factors.
People in the housing business are getting very rich from this and, of course, nobody pays taxes on profits to help rebalance the economy.
The cayman bubble has to burst soon. The fallout will be awful.
So wait to buy property after the bubble bursts to get a reasonable and realistic value?
Last time the bubble burst (2008), property prices went up. So don’t hold your breath.
Thank god we saved all those people from the virus…
Chickens come home to roost. pointless lockdowns now coming back to bite.
Reap what you sew.
Does this mean knitters, seamstresses and cross stitchers must reap their works?
…And some unnecessary, illegal and over-regulating Government fees are part of our constant cost-of-living problem!
CIG – a fees review is DUE!
Our current economic system continues to value human lives less than investments. We would continue to afford luxuries to the few at the expense of necessities to the many.
Inflation will only negatively impact the lower income earners. I doubt the super rich care very much if bread and milk double in price.
What did you expect would happen when the country is marketed to the world as a tax haven investment paradise? Years of this by several different actors, and it continues to this day.
I would expect the community to become wealthy, Caymanians to get a wide range of well paying jobs, businesses to thrive, and for a sovereign wealth fund to be established to guarantee the future whilst ensuring development proceed in a sustainable and managed way.
None of that has happed of course – but that is not because of investors. They are generally a very good thing. Our failure and even refusal to follow our own laws, and some corruption here and there, is what has doomed us in the face of incredible opportunity.
Well that hasn’t happened, despite years of doing it, so why continue?
Because it is our only hope, and would actually work well if we enforced our laws and held government accountable for its failures.
Charlie Brown trying to kick a football GIF
You should look north for the true source of inflation. You know what flows downhill; The U.S. is at the top and we are downhill.
So why is inflation occurring in the UK and Europe, Asia, and a myriad of others?
Same structure there as it is here.
So every year since 2000 inflation has been between 2-10 % but somehow the cost of living increase is only ever 1-4% every 5 years. The minimum wage just recently changed from $4.00 to $6.00 PH.
Please recalculate the true inflation.
Caymanians have to learn live within means….it just starting….
time for no-plan-pact to cut more cheques!…instead of actually doing something to tackle the issue.
What are your recommendations? Put forward suggestions not gripes.
This one won’t be affected and dislikes the poors being on his economic level
Enforce our freaking laws! If we did, most of our problems would be greatly mitigated.
end the cartels and collusion practices in cayman…which are supported by cig!
cig has block competition to cayman airways
cig has stopped walmat coming here
cig has stopped uber coming here.
Not the OP but what’s the point in making suggestions (which I have done for years) when there is no forum for them to be seriously considered and debated? So here’s a suggestion, we should have a public think tank to enable this.
I think the increase on food is even more because shrinkflation should be considered
And subsidies and duty concessions won’t work unless the price-gouging stores are audited to make sure the saving passes on to the public. Contrary to this, I expect they’ll just use inflation as an excuse to gouge prices even more.
Hear that hammer? It’s driving the final nail into the coffin of many businesses who rely on discretionary spending from thousands of households who will now further reduce their spending at restaurants, social events, home improvement stores, arts and gift shops, clothing stores, and even the grocery stores.
This in spades. Da Fish Shack appears to be closed. Wonder how many others are close to the edge?
More than we think
More pressure on the middle class down. Oh, well. It’s been fun. Enjoy everything we will miss out on, all you upper class and wealthy people. Leave us some crumbs from those nice restaurants and festivals.
Why do you blame rich people? This is caused by the US government and the Federal Reserve dramatically increasing money supply. If there were no rich people, then we would be Veneezuela (inflation and no food or businesses).
Its way too easy to blame the US and its malfeasance. This is a global problem that is much more complex and intinsically connected than you can comprehend.
12:28 Doesn’t help that Joe Biden is selling of the USA oil reserve to China. Many factors in inflation are directly affected by the cost of fuel so the US does have a large role to play in this.
CNS: Tucker Carlson/right-wing pundit BS talking points don’t help the conversation. Joe Biden is not selling oil to China. It is not his decision. See Why is the US selling stockpiled oil to China?
CNS: Brandon opened the US reserve into the public oil market. China is a big buyer in the oil market. See the connection? The reserve release helped all oil buyers. China is one of the biggest. Sorry to have to mansplain.
CNS: Mansplaining: “to comment on or explain something to a woman in a condescending, overconfident and often inaccurate or oversimplified manner”. Yes, that’s what you are doing. Biden’s release of US oil reserves might not help prices much but comments like “Doesn’t help that Joe Biden is selling of the USA oil reserve to China” is just clueless. You clearly didn’t read my last link, but try this one. It’s a bit out of date but interesting.
12:28pm – you are wrong. Cayman’s rising cost of living and inflation is directly due to the US Federal Reserve printing insane amount of money, thus increasing the money supply. The CI dollar is pegged to the USD, and 99%. of goods are imported from the US. I’m sure you like to pretend that this is too complicated to comprehend, most likely because you are a big government appologist.
The UK, Europe, Asia, South America, and hundreds of other countries are facing inflation as well.
Yes, but their effect here is much less, even though their currencies are depreciating much faster.
Stop importing poverty! It undercuts Caymanian wages and forces the government to incur liabilities it should not be facing!
It is not just the poor. Franz should be asked to account for how many tens of millions are being spent housing, educating, feeding, medicating and clothing the expatriate dependents of expatriate civil servants, and the civil servants themselves. The numbers are astounding.
To the best of my knowledge, aside from government paying their monthly salaries, health insurance and pension, the majority of Caymanian civil servants are not given any extra monetary allowances to pay for housing, clothing, children’s school fees, etc. I have seen a few expatriate civil servants’ employment agreements and on top of their salaries, most were also given monetary allowances for housing, vehicular, phone and children’s schooling, etc…….and you know that they are going to put their kids in expensive private schools because government paying the bill.
Most of the local staff can’t even dream of their kids going to a private school. Not surprising at all that CIG appears to take better care of expatriate civil servants.
9:43, one thing is certain, you clearly have NOT seen “a few expatriate civil servants’ employment agreements” since all these alleged benefits you cite are bogus and made up by you. Stop trolling.
This one is spouting unsubstantiated lies.
12:47pm: obviously you’re a mushroom – kept in the dark and fed plenty sh*t. Clearly you don’t have a clue what’s been going on in government…..bet those expatriate civil servants reading your comments about ‘alleged / bogus benefits’ and laughing at you because they know what they are getting.
Fosters has good prices on aluminum foil for your tin foil hat, but Cost U Less has it in bulk for your Faraday cages, but mind the jet contrails on your journey!
Psilocybin? Cool stuff
therapeutic medicine
What? Out of your tens of millions being spent, can you please provide one example of one dollar spent on “housing, educating, feeding, medicating and clothing” any dependent of an expatriate civil servant? Are you talking about salary paid?!
10:27 the person clearly stated they have viewed expat contract . Now you want them to publish it too nah? Believe it or don’t but don’t be so stupid to ask for oroof idjut. Really need to clean house bout ya
No. I am talking about their ability to send all their children to Cayman government schools, for free – at a cost to the Caymanian public of around $20,000 per child per year. I am talking about their ability to access free healthcare, at a cost to the Caymanian public, of thousands more every year. None of this is accounted for as part of their salary. It is a hidden benefit, potentially costing Cayman much more than the salaries alone.
We may pay the prison officer $40,000 a year for their important work. That is fine. However, may spend another $60,000 a year insuring and educating their families, and giving their kids free lunch. All seemingly “off the books”.
A flat out lie. Total rubbish.
What school fees do civil servants pay to put their expatriate children in government schools? If you know, please tell us.
Also a flat out lie that expatriate civil servants are still fully paid and receiving full benefits a year after they were caught smuggling drugs into prison? It really doesn’t matter what the excuse is. It is an outrage and indicative of the total failure of the civil service to act to protect the community they serve, and the waste it is responsible for.
12:24, Caymanian civil servants also access free healthcare (and pension contributions too) made by Government on their behalf. Their children also get free education and free lunches. Very few expat children nowadays go to government school as there is no space so the parents, NOT GOVERNMENT, have to pay the school fees and there is NO allowance included in their employment agreements to help cover this. Please stop trying to stir up discontent through falsehoods and/or misrepresentation.
Are you saying expatriate civil servants are not permitted to put their children in government school and that they have to pay commercial rates for their children’s health insurance?
No, 6:13. Read the post again and understand what is meant by “as there is no space”. In the past, when there was space, expat kids went to government schools and their parents paid school fees for them. As for health insurance, the dependent children of expatriate civil servants receive “free” health care through CINICO in exactly the same way as the dependent children of Caymanian civil servants do.
So the healthcare of the expatriate children is paid for by the Cayman people, not their parent?
Yes. Which is the allegation that is being denied.
So much total bullshit encapsulated in just a few lines.
The mediocre racists never miss the chance to blame others by appeals to nativism.
Simple economics is not racist. In fact, it knows no color. Just what happens to a country when it spends more than it receives, and when the percentage of its population that is not contributing passes a tipping point.
So expats don’t pay rent, utilities, buy food, petrol, medicine, clothes, dine out?
Curious!
The 10,000 or so struggling to exist on CI$6.00 and hour do not do most of the things you list. They exist and subsist only because of their living conditions being in breach of our own laws. Their emergency surgery, not covered by their crap insurance (if they are lucky to have any at all) still costs us $200,000 though, and our kids cannot even make $5.00 for washing the neighbors car because they have to compete with Westmoreland’s Detail King!
Yeah the tipping point is dem damn importees like ya self . Ya earn and ya send most of it home spending the bare minimum here. Try haul ona self home if ona like it ya !! We Always looking Fe good trouble but dese ratted people making a boil over Dey might not like in the end. Be nice to your Hosts fareigners ona getting Kona rank bout ya. We nah tolerate rank pee bout ya!
HUH?????
Guess they took their lead from Brexit!
whayasay a moronic comment. Globalists are destroying the world through forced vax, decreased fuel supplies and decreased food supplies. Wake up before it is too late.
Speaking of moronic comments…
That you, Alex Jones? Rather bad week in court, eh?
Paperboy I’m pretty certain you are the racist here. You are so pressed to comment this on multiple articles now and you are consistently calling locals mediocre. Do you have nothing better to do? Maybe donate some time to the charities to understand the seriously sad situation going on. Humble yourself please.
This true! Cut the upcoming slave laborers and send them back home or we all will be at 1900per month…CBC Start by enforcing laws on the many construction sites.
Three different woman come try sell us food this week with no idea what the DCi is and no license for even the car they came in much less a food business.
Third world standards imported with the persons responsible. No accountability. No equal or consistent enforcement. Not even sharing data between agencies.
These sweet ladies are making a living, harming no one, and are appreciated by workers.
Actually they are criminals, operating well outside various important laws and competing with and undermining numerous a Caymanian owned and licensed businesses.
The food is delicious though.
You say that but wait until the entire site gets food poisoning and work grinds to a halt.
they come to my site… i let them in… sun’s hot.. no cap!
Then it is up to you to report them, and follow up to make sure the rules are enforced. No good complaining that rules are broken if the authorities don’t know. Be prepared to stand up for what is right.
Go and do unmentionable things to yourself. These and other things have been reported to enforcement agencies for decades and THEY DO NOTHING!
When was the last prosecution for fronting?
Was there ever one?
That is the point. We have laws that are necessary and appropriate but we are too corrupt or incompetent to ever enforce them.
And the three different women, 5:43, probably have three different children for three different dead beat men. Ah so it go.
And start enforcing our freaking laws! Fronting is mainstream. Thousands have no health insurance. Thousands are working outside the terms of or contrary to conditions placed on their work permits. Thousands are not being paid overtime or are otherwise employed in breach of the labor act.
How dare you. We bought a car for our Fillipino servant. Quite a fair deal in exchange with 80-100 hour workweeks.
And thousands over value their worth as measured in dollars and cents.
Cayman follows the Democratic Party model.