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Consumer Price Index - August 16

Consumer prices in Bermuda rose 1.3% in August 2016 compared to August 2015. Several sectors contributed significantly to this increase, including education, recreation and entertainment (up 4.1%), health and personal care (up 3.6%), and rent (up 1.4%). Meanwhile, the transport and foreign travel sector saw prices fall sharply in August, decreasing 4.3% from the previous month. Overall, inflation fell from 1.6% in July to 1.3% in August as the average cost of goods and services in the consumer price index basket decreased 0.5% between those two months.

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143 views

Consumer Price Index - August 16

Consumer prices in Bermuda rose 1.3% in August 2016 compared to August 2015. Several sectors contributed significantly to this increase, including education, recreation and entertainment (up 4.1%), health and personal care (up 3.6%), and rent (up 1.4%). Meanwhile, the transport and foreign travel sector saw prices fall sharply in August, decreasing 4.3% from the previous month. Overall, inflation fell from 1.6% in July to 1.3% in August as the average cost of goods and services in the consumer price index basket decreased 0.5% between those two months.

Uploaded by

BernewsAdmin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONSUMER PRICE INDEX

August 2016
INFLATION FALLS

YEAR-TO-YEAR ANALYSIS

Consumers paid 1.3 per cent more in August 2016


than they did a year ago for the basket of goods and
services included in the Consumer Price Index (CPI).
The level of inflation fell 0.3 percentage points from
the 1.6 per cent measured in July 2016.

The Education, Recreation, Entertainment & Reading


sector was the largest contributor to the year-overyear change, increasing 4.1 per cent.
In addition, the Health & Personal Care sector and
the Rent Sector also impacted significantly the yearover-year increase. These sectors rose 3.6 and 1.4 per
cent, respectively.

Between July 2016 and August 2016, the average


cost of goods and services in the CPI decreased by
0.5 per cent. The all-items index dropped to 101.7 in
August. This means that the basket of goods and
services that cost $100.00 in April 2015 now costs
$101.70.

Inflation
Rate
1.3%
The compilation of

SUMMARY STATISTICS

the CPI involves the

Monthly

processing of several
thousand price
quotations. The
Department of
Statistics wishes to
acknowledge the
cooperation of the
business community
in supplying the
required price data.

Quarterly

Period

Index

Annual
per cent
Change

2015
Aug
Sep
Oct
Nov
Dec

100.4
100.7
100.6
100.5
100.5

+1.4
+1.0
+0.6
+1.4
+1.8

2016
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

100.3
100.2
100.1
101.1
100.9
101.5
102.2
101.7

+1.7
+1.3
+1.0
+1.1
+1.1
+0.8
+1.6
+1.3

Index

Annual
per cent
Change

2014
Q1
Q2
Q3
Q4

97.5
98.5
99.1
99.3

+1.8
+2.0
+2.1
+2.2

2015
Q1
Q2
Q3
Q4

98.9
100.2
100.6
100.5

+1.5
+1.7
+1.5
+1.2

2016
Q1
Q2

100.2
101.2

+1.3
+1.0

Period

BERMUDA CONSUMER PRICE INDEX

MONTH-TO-MONTH ANALYSIS
Food

Fuel & Power

The Food sector inched up 0.1 per cent in August


following a 0.3 per cent rise in July. Key
contributors to the increase were fresh steaks (5.2
per cent), salad dressing (3.5 per cent) and fresh and
frozen pork loin (2.6 per cent).

There was no movement in the Fuel & Power sector


as the fuel adjustment rate remained the same as
July.

Rent

The Education, Recreation, Entertainment &


Reading sector was unchanged at the sector level in
August. However, the average cost of pet upkeep
increased 0.1 per cent while the average cost of
premium fuel declined 0.7 per cent.

Education, Recreation, Entertainment & Reading

The Rent sector increased 0.1 per cent in August,


after a 1.0 per cent rise in July.
Household Goods, Services & Supplies

Transport & Foreign Travel

The Household Goods, Services & Supplies sector


was static in August. The average cost of detergents
and bleaches rose 0.6 per cent but was offset by an
equal decrease in the average cost of food wraps and
trash bags.

The Transport & Foreign Travel sector fell 4.3 per


cent in August, following two months of increases.
The average cost of air fares decreased 13.7 per cent
month-over-month while overseas accommodation
fell 5.3 per cent.

Tobacco & Liquor

The Tobacco & Liquor sector was static for the


second consecutive month. There were no changes
in the average cost of beer, wines, spirits or tobacco.
Clothing & Footwear

After a 0.1 per cent increase in July, the Clothing &


Footwear sector was unchanged in August.
Health & Personal Care

The Health & Personal Care sector was static for the
second consecutive month.
COMPUTING PRICE INCREASES
The Department of Statistics receives calls daily requesting the rate of inflation over specific periods of time. The
following calculations are provided to guide users as to how to compute rates of price increases. The monthly index
numbers can be obtained from our website www.gov.bm.
A) Month-to-Month Price Change
The price change between November
and October, 2015 is calculated as
Follows:
Nov 15 index - Oct 15 index

100
Oct 15 index

100.5 100.6
100
100.6

0.1%

B) Year-to-Year Price Change

C) Particular Period Price Change

The price change between December


2015 and December, 2014 is calculated
as follows:
Dec 15 index - Dec 14 index

100
Dec 14 index

The price change between April 2014


and January, 2016 is calculated as
follows:
Jan 16 index - Apr14 index

100
Apr14 index

100.5 98.7
100
98.7

1.8%

100.3 98.3
100
98.3

2.0%

BERMUDA CONSUMER PRICE INDEX

APRIL 2015 = 100

2013
WEIGHT

All Items

Food

Rent

Clothing
&
Footwear

1000

115

267

25

Tobacco
&
Liquor

Fuel
&
Power

Household
Goods,
Services &
Supplies

Transport
& Foreign
Travel

Education,
Recreation,
Entertain.
& Reading

Health &
Personal
Care

31

39

116

130

147

130

+2.0
+1.0
+0.5
+0.8
+2.1

+0.6
+1.6
+1.4
+1.7
-1.3

+2.6
+2.7
+2.5
+1.9
+0.9

+7.5
+6.6
+8.3
+6.7
+7.8

ANNUAL AVERAGE ( per cent)


2011
2012
2013
2014
2015

+2.7
+2.4
+1.8
+2.0
+1.5

+2.3
+3.5
+3.0
+3.1
+2.7

+1.1
+0.2
-0.3
+0.8
+0.6

+5.7
+4.3
+0.1
+2.0
+1.3

+3.1
+2.5
+4.4
+2.4
+1.2

+11.3
+11.3
+9.3
-1.9
-2.4
-8.9

MONTHLY ( per cent)

2014
Aug
Sep
Oct
Nov
Dec

+0.3
+0.7
+0.3
-0.9
-0.5

+0.7
+0.1
+0.1
Nil
-0.7

2015
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Nil
+0.2
+0.2
+1.0
-0.2
+0.8
-0.1
-0.2
+0.3
-0.1
-0.1
Nil

1.3
+0.2
+0.3
Nil
+0.4
+0.1
+0.1
+0.3
-0.1
+0.2
-0.5
-0.2

2016
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug

-0.2
-0.1
-0.1
+0.9
-0.1
+0.5
+0.8
-0.5

Aug 16

Aug '16
Aug '15

Nil
+0.1
Nil
Nil
Nil

Nil
Nil
+0.5
Nil
Nil

-0.1
Nil
+0.1
+0.1
-0.1

+1.3
+0.8
-2.6
Nil
-9.0

Nil
Nil
+0.1
+0.1
Nil

+1.4
+4.3
+1.0
-7.2
Nil

+0.1
+1.5
-0.1
Nil
-0.1

Nil
+0.1
+1.7
Nil
-0.1

+0.1
Nil
+0.1
+0.2
+0.1
Nil
Nil
+0.1
Nil
+0.1
Nil
+0.1

+0.2
Nil
Nil
+0.5
Nil
Nil
+0.7
Nil
Nil
Nil
Nil
Nil

+0.3
+0.1
+0.1
+0.4
Nil
Nil
Nil
+0.1
+0.2
Nil
Nil
+0.3

-2.5
Nil
+1.3
Nil
-2.6
Nil
+4.0
Nil
Nil
-1.3
-1.3
-2.0

+0.4
Nil
Nil
+0.1
Nil
Nil
+2.1
Nil
+0.3
Nil
Nil
Nil

-1.7
+1.9
+0.7
+0.4
-1.0
+5.9
-3.6
-1.6
+0.9
-1.2
+0.1
+0.4

Nil
-0.6
-0.1
+0.1
Nil
+0.3
-0.1
-0.2
+0.9
+0.2
Nil
+0.1

+0.1
Nil
Nil
+6.5
Nil
Nil
Nil
+0.1
-0.1
+0.5
Nil
Nil

+1.2
+0.6
-0.1
+0.3
-0.3
+0.2
+0.3
+0.1

-0.1
+0.1
Nil
Nil
+0.1
Nil
+1.0
+0.1

+0.1
Nil
Nil
-0.5
Nil
Nil
+0.1
Nil

+0.4
+1.1
Nil
+2.0
+1.5
+0.8
Nil
Nil

-3.7
Nil
-0.8
-2.6
-5.0
+10.4
+4.3
Nil

+0.1
Nil
+0.1
Nil
Nil
Nil
+0.1
Nil

-1.6
-1.4
-0.7
+0.8
-0.3
+1.0
+2.5
-4.3

Nil
-0.3
+0.2
+2.7
+0.5
Nil
-0.2
Nil

Nil
+0.1
Nil
+3.2
Nil
-0.1
Nil
Nil

101.7

102.6

101.6

100.4

106.5

98.5

102.7

95.6

104.1

103.7

+1.3

+1.7

+1.4

-0.3

+6.4

-2.8

+0.6

-3.8

+4.1

+3.6

BERMUDA CONSUMER PRICE INDEX

WHAT IS THE CONSUMER PRICE


INDEX?
The Consumer Price Index (CPI) is a statistical tool
used for measuring changes in the general level of
prices of consumer goods and services purchased by
private households.
The index measures price movements of a given
quality and quantity of goods and services. The mix
of these consumer goods and services comprising the
index, are figuratively thought of as a shopping
basket. In constructing this shopping basket, the
selected goods and services are organized first by
commodity type. They are then divided into subcomponents and assigned to a major expenditure
group. The Bermuda CPI is structured into nine
expenditure groups or sectors:
Food
Rent
Clothing & Footwear
Tobacco & Liquor
Fuel & Power
Transport & Foreign Travel
Household Goods, Services & Supplies
Education, Recreation, Entertainment &
Reading
Health & Personal Care

WEIGHTED AVERAGE
A mathematical formula that takes into account the
relative importance of an items price change
compared to the overall change in the sector or CPI.
Inflation

Inflation is the process of rising prices, resulting in


diminishing purchasing power of a given sum of
money.
Cost of Living Index

Many individuals refer to the CPI as a cost-of-living


index. The CPI is an index of pure price change only.
A cost-of-living index reflects the changes in buying
or consumption patterns that consumers would
ordinarily make to adjust to any change in the price
of a good or service.

A COMPARISON OF RATES OF INFLATION (%)

Selected Countries & Bermuda

Bermuda
1
United States
2
Canada
3
United Kingdom

CONCEPTS AND DEFINITIONS

2012

2013

2014

2.4
1.7
1.5
3.2

1.8
1.5
0.9
3.0

2.0
0.8
2.0
2.4

Sources:
1. US Bureau of Labour Statistics
2. Statistics Canada
3. UK Office of National Statistics

Base Period

The time period which is used as a reference point for


measuring the price change of goods and services.
The base period for the Bermuda CPI is April 2015.

Published by the Government of Bermuda


October 2016

Price Index Number

A single figure that shows how a set of prices has


changed over a specified period of time. An index
number on its own means nothing. It must be
compared with an index number from another period
to have meaning. For example, a comparison of the
index number 97.2 for January 2014 with 100.4 for
January 2016, reveals that prices have increased by
3.3 percent.

The Cabinet Office


Department of Statistics
Cedar Park Centre,
48 Cedar Avenue, Hamilton HM 11
P.O. Box HM 3015
Hamilton HM MX, Bermuda

Laspeyres Equation

The CPI is computed using this statistical equation.


This formula calculates the total amount of money a
household needs today to purchase the same basket
of goods and services that it bought in the base
period, April 2015.

Tel: (441) 297-7761, Fax: (441) 295-8390


Website: www.gov.bm

2015 Aug 16
1.5
0.7
1.1
1.1

+1.3
+1.1
+1.1
+1.8

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