Inflation climbed to 2.9% at end of 2024
(CNS): The cost of living is a major issue on the campaign trail, and candidates across the board are offering up a variety of solutions, such as sourcing food outside the United States and greening the economy to cut down on fuel and electricity. But it’s unlikely there are any quick fixes to the problem. At the end of 2024, the cost of living index was 2.9%, down from 4.1% the previous quarter but on the back of a long period of crippling price rises.
The average inflation rate for 2024 was 2.6%, but over the course of the year, housing costs, utilities, and groceries have peaked way beyond those numbers. In the final quarter, education (including preschool child care), communications, transport and health care costs were digging deep into household budgets with increases of over 14%, 12%, 5.8% and 4.3%, respectively.
The main contributors to the increase in the education index were a 20.8% hike in the cost of pre-primary and primary education, a 13% increase in secondary education and a 5.9% increase for tertiary education. And on top of the increase in transport costs, vehicle insurance, which falls under the ‘miscellaneous’ category, saw a hike of more than 20%.
The inflation rate on groceries was around 3.3%, which is on top of more than six years of consistent price increases that are making the monthly shop in the Cayman Islands unaffordable to many. With people choosing between food and utility costs, rent or mortgage over healthcare, inflation has wiped out savings and depressed wages dramatically as pay has not kept pace with the rising cost of living for most people.
Even though inflation decreased in certain categories last year, this hides rises in areas that affect more households. Overall housing and utility costs may have declined because of a drop in the cost of materials for maintenance and repairs as well as the first dip in electricity costs for a long time. However, rent paid by tenants increased by 5.6%.
While the price of some food products fell in December, some staple products went up, such as milk, cheese and eggs, which rose 8.7% and are expected to go up again this quarter. Bread and cereals went up 6%, vegetables almost 5%, and meat increased by 4% — all well over the average increase in groceries.
See the full report: Cayman Islands’ Consumer Price Index Report: October to December 2024.
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there is a quik fix, raies our pay to combat the cost of living, we already 10 years behind cost of living.
And yet no movement in the $6 minimum wage.
(Bermuda changed their minimum wage to US$16.40 two years ago.)
Well then you better head off to Bermuda. Our indentured servants do not need more money as they are lucky to be able to work here for us.
Just wait till Trump tariffs begin to impact imports. People will be crying for the times when inflation was this low. Living in Cayman is about to become unaffordable for many, and those that have the means will be off to where this tariffs have a lesser effect. Dark days are coming.
How about reducing import duties to compensate
Sadly, that’s a pipe dream
We need more charity farms like Cayman Community Farm on Hirst Road. May be each bank should sponsor one
The government should also allow their spare land for charity farming rent free Chris
If you were only able to realize that many Governments in the world including yours are only interested in themselves as THE entity and are just using the people they purport to represent as purely the product that keeps them running and fed you would then realize that they will never do anything just for the people. They will only do that which empowers themselves more regardless of the cost to you and the rest of the people of Cayman Islands. If you really want to do something for yourselves then you must first take all that power and your hard earned wealth back from what is now called Government for Government and remake it Government for the people. The big question is that even possible in your culture?
Truth.
You’re doing your bit Chris, just be careful Mac and Kenneth don’t seize the people feeding farm for vindictive reasons.
If the soil is too poor for farming, why not import fertile soils and amend farmlands across the islands? Food security would be improved.
Hydroponics. Solar cell, battery array, small DC pump for a circulator. Can be set up anywhere. Expensive on the front end, but fully pays for itself shortly.
All the barriers to attaining a decentralized electricity source aka off-grid solar, would have to be removed first.
Ever heard of compost? With the amount of organic waste that goes to the landfill, CIG could be in the business of selling soil to any farmer in Cayman. Makes too much sense.
Yay! Time for another quick pre-election COLA pay rise for us voters in CIG / Civil Service!!
Bids for votes start at 5%!
there are two distinct economic aspects blurred in this article and many people’s thinking.
Monetary inflation is the erosion in value of a currency and affects all prices of things bought with that currency. Since our money is tied to the US dollar, it must go down and value at the same rate (inflation).
Real price increases, on the other hand, our function of forces of supply and demand. When costs go up and are reflected in higher price prices for a myriad of reasons, we become poorer depending on how any elastic our demand is for those items.
I hope my students remember this. Ginnie
Whatever….you want to see real inflation that hits us all in our pockets..?..If the next government is PPM, sit back, and watch as they borrow another $500Million for the Cruise piers and other self serving projects.
Don’t vote PPM and save us from another 4 years of Mac Kenneth Jujudas Dumbdum and Saunders.
I got an idea, lets all register as churches so we can get unfeathered access to ‘grants’ and ‘donations’ from politicians.
I identify as a pastor for the Jedi order of Pastafarianism.
Daily congregation meetings in my backyard consist of about a dozen stray cats, copious amounts of ganja, and afterwards, Pasta, of course.
R’amen!
You mean “unfettered”, but yes, a good notion.
Once PPM gets back in power things will be way better. Honorable Hew & Bryant know how to treat investors so we will all benefit tremendously.
PPM-PPM-PPM
Is this sarcasm?
Forget you Lola, PPM is the best, vote strait PPM for a clean sweep!
Your stupidity is matched only by your spelling.
Yeah Lola! Don’t you want your slice of the pie above all the other electors?? ;o)
Hmm. The new MPs will surely give themselves another big welcoming RAISE on 1st Aril!
Then watch the workers meltdown in June when the tourism staff go from. 4.50 to $7/hour BUT their Grats will no longer be part of their pay.
Modern imported global indentured servitude – and depriving local workers of a Liveable Wage, health care etc and forward to the smallest social Welfare state in the Universe!
I read the inflation number in the headline — 2.9% — but I’m not buying it. What I experienced in real life was WAY beyond 2.9% for 2024. In my opinion, 2.9% is a completely phoney number — a deliberate understatement of the true number to make politicians look better.
BS…my health insurance premiums jump 30/40% and house insurance disgusting too.
Our premiums pay for Directors salaries and bonuses, shareholders dividends, sleek offices, expensive wines at directors dinners and cocktail parties.
Premiums could be far less if the benefit of the customer was the only consideration.
Agree. The cost of beef, fish, eggs, everything else has not quite doubled, but close to it. That’s a hella lot more than 2.9%.
Why is house insurance always overlooked? It has doubled in the last 2 years!
This affects housing affordability, increases rents and strata fees etc.
This kind of insurance should be looked at very closely, from a price gouging standpoint.
Insurance premiums are also dependent on reinsurance capacity and reinsurance rates. Your house is most likely reinsured by a reinsurer in Europe (Swiss RE, Munich Re etc). CIMA requires this sort of reinsurance by all Cayman based insurers. Cayman is a very small market for global reinsurers so we in Cayman have no real bargaining power.
My rent went up 15% this year after a simultaneous increase the previous year (which is illegal). When I brought it up my landlord’s excuse was that he had to pay to replace a 20 year old appliance so the increase will cover it. Pay it or move out – someone else will pay the increased rate.
If I didn’t laugh I would’ve cried.
AND it will go up considerably again this year due to all the fires in Cali
My diet has drastically changed in five years due to the cost of living. I no longer drink milk… because it cost more than buying almond milk. I no longer eat cereal or bread or purchase foods that I used to enjoy. Buying fruits and vegetables is expensive and they spoil too quick. Now my main shop consist of canned or processed foods. And for a proper meal, I’m better off ordering from a cook food shop for $10 and have it last me two meals. Sad conditions Cayman has been left in.
Then when you get sick it becomes a burden on the government. Its a vicious cycle and it is not good plan for the government to continue on this track. People please vote wisely, this is the last opportunity to have men and women voted in who cares about the people, their well being and country. Not the special interest groups that has been benefiting from sweat of their brows and the people get the crumbs.
Not all canned or processed foods are unhealthy and local shops always have vegetables and fruits on plates.
Fresh fruits and veggies from the stores go bad here quicker than a dayglo shirt driver in a Fit.
This guy, in fact, gets it and will be well prepared for hurricane seasons.
“Fresh fruits and veggies from the stores go bad here quicker than a dayglo shirt driver in a Fit.”
I love this line. Brilliant and funny. :up:
Much of our “fresh” fruits and veggies are at the end of a long pipeline. You know what flows downhill, and we are there. Gas-ripened tomatoes, etc.etc. Genuinely fresh, as in grown here or nearby, last considerably longer.
Things are so bad, I’m considering growing Russett potatoes. They are easy to grow, but take up a lot of space. Fresh Russett potatoes could be stored on a rocket and shot to Mars and back and possibly be more fresh than that which we get here. When I was a kid, potatoes and onions could be stored in a fruit cellar for six months or more, and then a month or two more once taken out. I buy potatoes, and if they aren’t consumed in a week, they will start to grow, and get green, which is indicative of them becoming toxic. I store them out of the light under a counter. Than means that our potatoes have been ‘on the road’ for many, many months before they get here.
Now just imagine all the other goodies we get. Strawberries and other berries that almost immediately rot after purchase. We need to do better personally as micro-farmers, and government needs to fund famers more. Of course, this action would require profound oversight, and that’s certainly not our strong suit, is it?
What a way to live, I sometimes regret leaving in 2015 but if I had to live like that, what would be the point in living there!!