WILLEMSTAD – The consumer price index of Curacao has increased in the month of November 2014 by 0.7 percent. Measured over the period of twelve months to November 2014, compared to the same period a year earlier, an average price increase can be observed from 1.4 percent.
The most notable changes in prices during the month of November occurred in the spending category “Housing”. This is evident from the data that the Central Bureau of Statistics (CBS) announced recently.
Price developments during the month of November 2014
The consumer price index (CPI) of Curaçao increased in November 2014 compared with October 2014 by 0.7 percent, thus from 124.5 to 125.4.
The two main changes in prices during the month of November were the increase in electricity and water tariffs by 10 and 5 percent respectively. Mainly due to these two price developments, the spending category “Living” 2.2 percent become more expensive.
The remaining eight spending categories have barely changed in price: five are (almost) stable in price, two are slightly more expensive and one has become slightly cheaper. The spending categories that (almost) showed price stability, “Beverages and tobacco” (+ 0.1%), “Clothing and footwear” (+ 0.1%), “Other” (+ 0.1%), “Recreation, education and development “(0.0%) and the” Health “(- 0.1%). While spending categories “Power” (+ 0.3%) and “Furnishings and household goods’ (+ 0.5%) and the spending category “Transport and communication” (-0.3%), on the other hand, has become slightly more expensive and slightly cheaper respectively. The decrease of the spending category “Transport and communication” is caused by petrol and diesel, which have become cheaper by 1 and 3 percent respectively.
Corrigendum to publication of figures for October 2014: Over the month of October 2014 the CPI of the spending category “Transport and Communications” was no 118.7 but 118.1. As a result, the overall CPI, which was not 124.7, but 124.5. The inflation rate for October nevertheless remains 1.3 percent. This shows a necessary recalculation of the CBS.
Price development compared to a year ago, and long-term inflation
The consumer price index in November 2014 (125.4) was 2.2 percent higher than in November 2013 (122.7). This figure shows that the month of November of this year was 2.2 percent more expensive than the month of November last year, as far as the average price of consumer products and services goes.
The twelvemonth average price in November 2014 was 1.4 percent higher than in November 2013, thus an increase in the 12-month average consumer price index from 122.3 to 124.0. This figure (1.4%) gives the CBS a good picture of the long-term inflation and is therefore recommended as an indexing tool.
Inflation is a reflection of the loss of monetary value, thus purchasing power, because the consumers’ prices for products and services is higher. The inflation rate is an indication of the average increase in the cost of living. It may be that inflation in Curaçao has been gradually on the rise in the last five months, after a period of decline.