Inflation slowing down but prices still climbing
(CNS): The price of food, rent, utilities and clothes all increased during the second quarter of this year. The local inflation rate is still rising, even though it has slowed down to 4.1% from its peak of over 12% in the summer of 2022. The Consumer Price Index (CPI) between March and June was 130.4, with higher price indices recorded in ten of the twelve divisions.
Premier Wayne Panton said he was well aware of how challenging this is for many families but maintained that PACT was continuing with initiatives to help people get through.
According to the official statistics released by the Economics and Statistics Office, the price of household furnishings and equipment rose by 10.7%, food by 7%, housing and utilities by 6%, and alcohol by almost 4%, making it another difficult quarter for residents. A 15.3% increase in the price of electricity was a major factor in the rising cost of living.
While the quarter-on-quarter inflation reveals that the CPI declined slightly compared to the rate for the first quarter, prices are not coming down and tackling inflation is a top priority for the government, Panton said.
“The residual effects of the pandemic and Russia’s invasion of Ukraine have contributed to prices rising more quickly than usual over the last few years,” he stated in a press release about the latest inflation figures. “These price increases also have the effect of raising the cost of living across our islands, especially for the most vulnerable Caymanians.
“We know this is worrying for many people and families, and this remains one of the top priorities for this government. Indeed, tackling the cost of living is one of the challenges this administration grapples with each day. Every morning, we wake up seeking solutions that bring meaningful relief to the people of this country,” he added.
With inflation running at 4.1% during the second quarter, down from 6.6% in the first, there is a gradual levelling off in the inflation rate. However, the rate for this year is still expected to be around 5.2%, far higher than any salary increase.
“It is expected that the impact of Central Bank actions and improvements in the international supply chain will help to temper these price pressures throughout the upcoming year,” Panton said but acknowledged that the cooling down was still making the cost of living the most pressing issue for many people here.
“Despite this slowdown in the pace of inflation, these increases remain well above the comfort levels for many Caymanians,” the premier said. “Government initiatives to decrease the cost burden for families, including providing free school meals for our children, removing import duties on essential products, increasing pension payments to retirees, and reducing fees for the elderly, will continue.”
The premier said that both the ongoing review of the national minimum wage and the recommendations of the inter-ministerial housing task force will offer solutions to address issues surrounding the cost and availability of affordable housing in the Cayman Islands.
“Inflation is falling, but it is still too high,” he said. “While I will continue to do everything in my power as premier to bring inflation down, I think most Caymanians will recognise and appreciate that inflation is a local challenge with global causes.”
In its July update, the International Monetary Fund (IMF) said that inflation remains high globally and continues to erode the purchasing power of families and households in countries around the world.
“These burdensome, global inflationary pressures are a challenge for families and kitchen tables across the Islands,” Panton said. “This government will continue to do our best to mitigate and deal with the effects of inflation for Caymanians here at home.”
See the Cayman Islands’ Consumer Price Index Report: April to June 2023.
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Category: Economy, Local News, Politics
The price of everyday products has nothing to do with supply chain issues, pandemic aftermath, inflation. It’s simple GOUGING by vendors, especially the supermarkets. The cost of essential products is rising weekly. Wouldn’t surprise me if, in the background, a little price fixing is taking place.
Agree. How can there be such a difference in supermarket and alcohol pricing between UK and Cayman, look at all the price reductions, special offers etc. Cayman lucky if there is 50c reduction and that is considered a ‘special’! Reduce the duties and these wealthy owners should pass price reduction onto consumers! There is no reason for things to be so expensive and ‘because we are an Island’ is not an excuse. Bring in Tesco, Morrisons, Aldi etc. oh, yeah, big cheeses would not the competition.
LMAO Litre bottle Baileys in UK supermarket £13, Baileys in Cayman CI$39. ??? Food prices too.
Why does everyone here compare everything to the UK? As someone who has lived in both Cayman and Britain, I can tell you Britain produces a lot of its own food. In the supermarket you’ll see nothing but British milk, British beef, British fruit (especially in the summer). Cayman, despite its ability to grown food doesn’t and has to rely on most of its food to be shipped from the US. So stop comparing everything to the UK. They are two different economies, and have completely different approach to growing and selling local produce. Why does coconut water cost so much when there are coconuts everyone in cayman? Someone is taking a huge cut and the lack of competition doesn’t help, Walmart should have been allowed in, but has been blocked. It’s time the government takes another look and allows competition so Fosters and Kirk stop charging what they want.
Are you DAFT?
They grow, process, manufacture and package their own food in the country.
The Cayman Islands IMPORTS EVERYTHING through multiple countries with the associated cost of shipping, refrigeration and handling.
THEN local supermarkets pay the ridiculous energy costs, and Government costs, and labour costs.
Cmon Wayne…bridle your cronies spending.
$40,000,000…..Kenny Terminal.
$25,000,000…..Rich people beach sand.
$100,000,000….for a new Prison Resort.
$25,000,000……Brac school.
The only useful expenditure there is The Brac school..at least the people benefit from that. But $165,000,000 (plus ridiculous Kennybeach) can be saved , right NOW.
A Hundred Million for a new woke Prison..?
How in hell does any government in Cayman’s current situation, have the blind stupidity to waste money we don’t have..?
Persuaded by some salesman no doubt.
We’ve needed a bigger prison for decades. Dangerous recidivists are being released prematurely into the community to make room for new inmates. There is no space.
$1000,000,000 is the answer? Just throw money at everything -how much wss thrown at building schools that were never finished.
Need a bigger prison..? Add a wing, not build a resort for the comfort of criminals, offering them better food and living conditions than they live in.
I’d be a recidivist too if that was the case.
The Julianna O’Connor Conolly High School is actually budgeted to cost KYD 50 MILLION.
Word to the wise.. shop around for your healthcare too
It is my understanding that all the health care providers are not currently accepting new policies.
Aren’t they all the same here.
Inflation decreased but prices increased = Voodoo economics!!!! Or what is becoming a world wide used word; BIDENOMICS!
CIG Finance Department economics and statistics office stop trying to blindfold the public because unless my money buys more Inflation ain’t going down!
No government since 1992 is doing anything about resolving the local problems! Only creating more and more chaos and mistrust!
If you all want to do something before elections:
– get fuel prices under control
– got food prices under control
– get crime, traffic and policing under control
– get immigration under control, this is a easier fix than politicians claiming. Start with:
– 3 years max WPs for Public and Private sector. Bring back the 1C section of the 1990s Immigration Act,
– WPs none connection with Residency and Status. These two cannot any longer be connected in anyway.
– a new or amend Immigration act to where one’s investment must be net of debts $1 million!
– Act of law to force persons to pay their PR fees b4 they are issued with it and after 2 years of nonpayment they PR is forfeited and persons must leave the island! No Ifs or Buts!
The rate of inflation decreased, but there was still inflation. Can’t tell if you’re being willfully ignorant, or just ignorant.
Looks like a hard candy Christmas this year.
Some people are zombies when they shop. Being creatures of habit many tend to just go to their local stores on their regular route and never bother to check around.
There are major disparities in prices on some everyday foods depending whether the store has boutique like decor to it or not. And then there’s the hidden deals which aren’t even advertised.
But with home goods and hardware it’s not even a question. If you don’t need it right now and have the know how to import it yourself why would you even bother driving around a half dozen places risking life and limb to find the best deal on island? Even buying retail in the US on Amazon, Walmart or eBay and paying to import is far cheaper that what a brick and mortar stores here sell many things for. Most businesses here are seriously price gouging and have been doing it for decades.
This increase in already exorbitantly pricing should not come as any surprise to anyone. Unfortunately nothing can be done about fuel, telecommunications and essential perishables we just have to suck it up.
This is why I ship in as much as I can. Even with the cost to ship its still often cheaper to buy online. Patience is required of course, but so much isn’t NEEDED right away and if you plan ahead, you can come up ahead.
Dumb are the Cayman retailers that price gouge, as we aren’t stupid and as a matter of principle I won’t shop with you if you’re that greedy. I understand they need to make a living too, but if they offered their goods at a fair price I would be happy to spend my $$ there.
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We are struggling to make ends meet and some people are drowning; it is a painful and undeniable truth. By extension, please keep your eyes on the Israel-Palestine situation because the Caribbean could end up embroiled in it. Cuba, Nicaragua and Venezuela have shown their unabashed support for Hamas and if other countries get involved, our fuel and food supply might be impacted. Hope for the best, prepare for the unexpected.
Food increases by 7%… I trust this inflation report…
He must be eating only bread fruit, that too not from supermarket, it must be from his yard.. LOL
Exactly! Must be eating bread and drinking bush tea. (I still drink home grown mint and fever grass teas so nothing wrong with that) however, “man shall not live by bread alone” We meed to be able to have balanced diet BUT how in earth can we do that with these prices? I truly believe the Big supermarkets can do better. Greedy people. Yes, they have overhead but I still think they can and should do better!!
Lord help as all as we try to help ourselves 🙏
When I was in the Tampa area last week most gas stations were selling regular at USD $3.29 to $3.33 per gallon. One Circle K even had it at $3.07. I know we use Imperial gallons here, but there is NO way we should be paying over CI $6.00 per gallon. The cost of gas affects so many other prices.
lip service….PACT is not going to do a thing. if they want to truly help quit allowing businesses to price gouge , it’s absurd what the big “families” are charging absolutely absurd.
I will personally continue to shop(for as much as possible)off island pay the necessary freight and duties….
Paying twice or three times to get simple tasks done properly is a unique Cayman frustration that defies any inflationary expectation. The cost of ineptitude is the biggest drag on the local economy. Wrong at any price.
5.10pm Stop using cheap labour’s. You get what you pay for.
“Inflation is falling, but it is still too high,” he said. “While I will continue to do everything in my power as premier to bring inflation down, I think most Caymanians will recognise and appreciate that inflation is a local challenge with global causes.”
1. Inflation is the increase in supply of money, but is more commonly used to describe the increase in prices. Something which is always increasing cannot “fall”. Using these terms are intellectually dishonest.
2. No fault to the premier here. He can’t control the economy because we in cayman can’t control anything. We don’t produce anything, we don’t control our own money, we don’t control our own interest rates, we don’t control our own population.. So I don’t blame one person on one party. Its the fault of the entire system at hand which no one is taught and no-one cares to learn about, despite having the entire world’s population at our fingertips.
Economists love to say that “You need around 2% inflation for a healthy economy”.
Can anyone of those economists answer, honestly, why that is?
The alternative is stagnation, or deflation.
If they can’t they’re not really an economist. I’m not an economist but very briefly… low stable inflation encourages the productive use of capital. To the saver/business it is effectively a small tax on doing nothing useful with your money and money being used productively is generally good for the economy… in other words it encourages investment. Zero, or worse, negative inflation does the opposite aka deflation and likely recession. High inflation, like what we have causes large, economically unhealthy, imbalances between asset prices and incomes which usually also corrects in recession.
This is note true. During the Golden Age in Europe when there was a gold standard (gold was money) there was fantastic growth and hardly any inflation. Inflation is simply a means for the government to tax the population without them knowing it. The extra 2% of money that is minted goes first to favored groups that get to spend it. Of course, this can’t happen in Cayman as we don’t mint the monney – it is the US at fault here.
yea but greed ain’t slowing..
Problem is, prices never return back to their previous lower levels.
That’s why now is a great time to buy!
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Well if you want deflation there is usually a global (financial) crisis that comes with that.
how can CUC be guaranteed 15% increases and companies here not even have to give 7.5% increase in wages. It makes no sense to the uninitiated, but the smart man and woman can see exactly who’s to blame for daily plight! for a company to be monopoly provider of Electricity get a guaranteed 15% profit is insane and down right corrupt. an unholy alliance is CIG and CUC. its needs to be severed.
CUC does NOT get any guaranteed profit. Get it out of your head. They do get a profit but there is no guaranteed percentage.
Vote down all you wish. It is the truth. That part of their contract with the country was removed quite a long time ago.
All talk, what exactly has been done? This certainly has not happened ‘….increasing pension payments to retirees and reducing fees for the elderly, will continue.’ What fees have been reduced? On $1,000 per month, still paying same fees as those on a salary and same prices in supermarkets. Talk rubbish!
deflation is needed …not just a slow down of inflation….
And wages have been….absolutely stagnant. Ugh
Are we still planning on spending $25 million on sand for rich people who are wholly responsible for the loss of their sand?
Are we still planning on spending $25 million on an elite airport terminal, so the riche don’t have to rub elbows with the great unwashed?
Am I the only person who thinks these plans are inconsistent with the assurances of the Premier that he will do “everything in his power”?
I absolutely agree with you! The figure for the proposed new private aircraft terminal is $40 million though I believe. Which will likely double by completion, if history is any gauge….and it it!
And … was it $50m for a school in the Brac?
So ridiculous when we need more school spaces on GRAND CAYMAN because they’re allowing the children of expat civil servants to attend public schools.
Forget this stupid $50M school for maximum 200 students (if that) and the glorification of Juliana’s ego and put the money into school expansions on Grand Cayman for the most over-crowded and over subscribed schools.
Oh, and STOP allowing kids of expat civil servants to attend government schools. If they can’t afford private school, they can’t bring their kids or don’t get the job.
In fact – cut down on the hiring of expat civil servants unless in a highly specialised and/or technical field. WHY are we continually hiring expat communications, policy and admin staff in the Civil Service when there are applications from fully qualified Caymanians? WHY??? Not only does this put stress on the school system, but also on the health services – since all government employees AND their dependents get full coverage via CINICO.
Yes, forgot that little dittie. So there is over $100m we’ve hypothetically saved, just by trimming a little fat off the capital projects budget.
And do we need to be paying consultants,Millions, working on a HUNDRED MILLION DOLLAR.. Resort Prison , so that our own dear , and dear foreign Criminals, can be more comfortable.
UDPact don’t talk to us about rising cost of living being everyone else’s fault.
Stop this wasteful spending now.