The Average Annual Inflation Rate is 1.3% for 2025

The average inflation rate for 2025 is 1.3 per cent, with the second quarter recording the highest quarterly increase of 2.0 per cent. This reflects a rise in the overall index, mainly driven by higher prices for education, communication, restaurants and hotels, food and non-alcoholic beverages, alcoholic beverages and tobacco, household furnishings and equipment, and miscellaneous goods and services.

The fourth-quarter inflation rate was 1.2 percent, with the main contributor being an 8.0 percent rise in the communication index. The 10.5 percent rise in the cost of telephone and telefax services was the main contributor.

Education recorded a 4.6 percent increase, with pre-primary and primary education rising by 5.3 percent, secondary education by 5.9 percent, and tertiary education by 4.6 percent. There was also a 4.0 percent upward movement in the restaurant and hotels index, a 3.8 percent rise in food and non-alcoholic beverages, a similar 2.2 percent rise in alcoholic beverages and tobacco, as well as miscellaneous goods and services and household equipment.

A comparison of the fourth quarter of 2025 with the third quarter of 2025 indicates that the CPI rose by 1.3 percent, while the index for communication rose by 4.2 percent, housing and utilities by 3.1 percent, miscellaneous goods and services by 1.6 percent, and education by 1.0 percent.

More information from the Cayman Islands’ Consumer Price Index Report: October to December 2025 may be downloaded from www.eso.ky