2006 Inflation Report Released

"Consumer Price Index Up by 0.7% in 2006"

Consumer Price Index Up by 0.7% in 2006

The average Consumer Price Index (CPI) in 2006 stood at 143.0, increasing by 0.7% from the average CPI in 2005.

Underlying the increase in CPI were the average price increases of the following major categories of goods and services: (a) transportation and communication by 4.8%; (b) clothing by 5.0%; (c) food by 2.7%; (d) personal goods and services by 3.1%; (e) education and medical by 2.1%; and (f) alcohol and tobacco by 1.9%.

The increases from the above items were offset by average price declines for the following major categories (a) housing by 4.2%; and (b) household equipment by 0.1%.

The 0.7% average inflation in 2006 was generated amidst a gradual increase throughout 2006: from -1.6% in March 2006, the inflation rate rose to 1.0% in June, 1.5% in September and 1.7% in December. The inflation rates for the first three periods are, however, lower than those recorded in 2005. The exception is the December 2006 inflation rate which represents an increase compared to -0.3% inflation rate recorded in December 2005.

Every quarter of the year, the ESO surveys the prices of 661 items in Grand Cayman and estimates the overall CPI based on these prices. The 661 items were selected based on the results of the 1991 Household Income and Expenditure Survey.

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