1. The Consumer Price Index, which stood at 108.4 in June 2016, registered a net increase of 1.2 points (or 1.1%) to reach 109.6 in September 2016.
2. The increase during the 3rd Quarter 2016 was mainly the result of price changes following 2016/17 budgetary measures (+1.0 point) and related to:
- higher prices of cigarettes (+0.9 point), rum and other cane spirits (+0.3 point), beer and stout (+0.1 point);
- higher prices in bars and restaurants (+0.1 point); and
- lower prices of cooking gas (-0.3 point) and motor vehicles (-0.1 point).
Other main contributors to the CPI change from June to September 2016 are: traders’ rice (+0.2 point), fish (+0.1 point), fruits (+0.1 point), meat (+0.1 point), other food products (+0.1 point), vegetables (-0.4 point), ready-made clothing (+0.1 point), doctor’s fees (+0.1 point), air tickets (-0.1 point) and lower interest on housing loan (-0.1 point).
3. The headline inflation rate for the twelve months ending September 2016 works out to 0.8% compared to 1.2% for the twelve months ending September 2015.
4. The headline inflation rate excluding ‘Alcoholic beverages and tobacco’ for the twelve months ending September 2016 works out to 0.4% compared to 1.2% for the twelve months ending September 2015.
5. On the basis of trends in previous years and recent price changes, the headline inflation rate for calendar year 2016 is estimated at around 1.2% compared to 1.3% for the previous year.
Ministry of Finance and Economic Development
14 October 2016