A comparison of Jamaica inflation rate against Bahamas inflation rate ranging from 2008-2011.
Inflation rate refers to a general rise in the prices measured against a standard level of purchasing power. For all Jamaican, inflation rate was recorded as 6.0 for the 2011 calendar year. This increase was 5.7 percentage points below the 11.7 per cent that was obtained in the 2010 calendar year. In 2009, it was 10.2 per cent while each of the years 2007 and 2008 moved up by 16.8 per cent.
The factors that contributed to this rate of increase were fluctuations in world oil prices, the exchange rate for the Jamaican dollar vis-à-vis the United States dollar, sugar prices on the world market and the absence of bad weather conditions such as flooding, drought and hurricanes throughout 2011.
The first quarter of 2011 recorded the lowest quarterly movement of 0.5 per cent. By the second quarter of the year there was a 1.5 percentage point rise to 2.0 per cent. In the third quarter the All Divisions – All Items movement was 2.1 per cent. In the fourth quarter there was a decline of 0.8 percentage point over the increase in the third quarter as an increase of 1.3 per cent was recorded.
A look at the semi-annual movements for 2011 showed that there was a 2.5 per cent increase in the first half. This was 0.9 percentage point lower than the 3.4 per cent that prevailed in the second half.
The index for the division ‘Housing, Water, Electricity, Gas and Other Fuels’ had the highest movement in 2011, the only division that experienced double digit inflation. The division ‘Restaurants and Accommodation Services’ recorded the lowest rate of increase – 2.3 per cent for the period that is under review.
Now, Inflation in Bahamas and other countries is usually calculated as the percent change in the Consumer Price Index (CPI) from one year to the next. The Average Inflation in Bahamas was reported at 2.08 percent change in 2009,
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