Inflation begins to slow but averaged 3.8% in 2023

| 14/03/2024 | 28 Comments

(CNS): The cost of living rose by an average of 3.8% last year compared with 2022, the Economics and Statistics Office confirmed after releasing its Consumer Price Index Report for 2023 this week. While inflation slowed last year, particularly during the last quarter, the rise in the CPI followed the 9.5% average increase during the previous year, which means consumers were still paying over 13% more for everything at the start of this year than they were at the start of 2022.

In the last quarter of 2023, the rate of inflation slowed to just 1.7% compared to the rate at the end of September. However, for almost four years, inflation has increased year on year while most people’s earnings have failed to keep up with the very high cost of living in the Cayman Islands.

Nearly all of the categories of goods and services measured by the ESO increased in price during 2023, including the basic necessities of housing and utilities, which were well above the average rate. Utilities increased by well over 4% throughout 2023, which consumers must pay on top of the previous year’s increases in power and water bills.

Overall housing costs were impacted by another 12.8% increase in rent prices, which is three times the average inflation rate. With a massive shortfall in affordable accommodation to meet the demand, rental units in the private sector are increasingly unaffordable, leading to extremely cramped living conditions for many low-paid workers.

The overall cost of food and non-alcoholic beverages fell by 0.6% due to a decrease in the price of vegetables (down 9.7%), fruit, tea, coffee, cocoa, seafood, milk, cheese, and eggs. This was countered by a price rise in oils and fats (up by 17.8%), sugar, sugar confectionary and snacks (up by 11.9%), soft drinks, juices, meat, bread and cereal.

The ESO has also released the imports report for the second quarter of last year. The total value of merchandise imported in July, August, and September 2023 was $380.29 million, which was 0.8% less than the third quarter of 2022. This was largely because the value of petroleum imports declined by 26% due to a drop in the price of oil. However, the importation of non-petroleum goods grew by 4.9% during the review period.

See all the ESO reports on its website.


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Category: Economy, Politics

Comments (28)

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  1. Anonymous says:

    Remove import duty on food and force super markets to pass on savings. Criminal.

  2. Anonymous says:

    caymanians sold their heritage/culture/land/country to the rich/billionaires…i hope they eventually employ tgem at minimum wage and house them in barracks….we did it to ourselves ppl! but not me…i have property on all 3 islands…to leave for my kids also…and i did this on a govt salary throughout…perhaps being single past 17 yrs and living well within my.means have to do with it? plus it allows me to travel often and enjoy life as a single indeginous/native caymanian…think about it…

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  3. Anonymous says:

    I am behooved as I behooved myself out of bed this morning that this inflation report shows an opportunity for the Cayman community to go back to its heritage roots of the days of fishing for food and harvesting fruits and vegetables in the garden back before all this wealth came on island. Fond memories of me and Bobo fishing in mi yard ya know.

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  4. Elvis says:

    Most of it is greed by vendors, price gouging and stupid prices. All it has done-to me is make me eat smart and healthier. Eat out less. Eat loads of greens and eat less. Much healthier.

    Shame for everyone who cant afford to even buy food still, Cayman will soon price itself out of the market trust me.

    Nota wage rise in sight just the fat cats right?

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  5. Anonymous says:

    yep, I’m shipping in non perishable essentials now. Even with shipping costs it’s still cheaper to do so.

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  6. Anonymous says:

    Thanks Bidenomics

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  7. Anonymous says:

    nonsense…do these ppl ever go the supermarkets around here?

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  8. Anonymous says:

    very little inflatiom….pure GREED!

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    • Anonymous says:

      yep, I’m shipping in non perishable essentials now. Even with shipping costs it’s still cheaper to do so.

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  9. Anonymous says:

    Not that surprising. Crazy population growth leads to more demand, supply is limited or doesn’t catch up, so prices go bananas. I wonder how long the party lasts. I suspect more people will leave.

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