WILLEMSTAD – The consumer price index (CPI) of Curaçao increased by 0.2 percent in April, while it fell by 0.1 percent in May, from 127.7 in March to 127.9 in April and 127.8 in May.
The most striking specific price changes in April are the cost of propane gas (+ 9%), the tariff reduction of tap water (-5%) and the increase in gasoline prices (+ 2%). The price development in May is mainly characterized by the reduction of diesel/gasoline (-5%), the tariff reduction of electricity consumption (-4%), the tariff increase of tap water (+ 2%) and the cost of gasoline (+ 2%).
Price development April and May 2018 compared to April and May 2017
The CPI of April 2018 (127.9) is 2.0 percent higher than the CPI of April 2017 (125.4), while the CPI of May 2018 (127.8) is 2.2 percent higher than the CPI of May 2017 (125.0). These figures give an indication that the cost of living in April and May 2018 are respectively 2.0 and 2.2 percent higher than in the same month of 2017.
Long-term price development: inflation in April and May 2018
Inflation is a reflection of the loss of monetary value, ie of purchasing power, because the consumer prices for products and services increase over a longer period (usually 12 months). The inflation rate is therefore an indication of the average increase in the cost of living and is therefore recommended as an indexing tool for salaries, pensions, social benefits, minimum wages and other incomes. Inflation in a given month is calculated by comparing the 12-month average of the CPI in that month with the 12-month average CPI in the same month a year earlier.
Measured over the twelve months up to and including April and May 2018, compared to the same period a year earlier, consumer prices have risen by 1.6 percent on average: the 12-month average CPI has grown from 124.2 in April 2017 to 126.2 in April 2018 and from 124.4 in May 2017 to 126.4 in May 2018. Inflation in Curaçao in both April and May 2018 is 1.6 percent.
Long-term price development: inflation last 27 months
Over the past two years (27 months), consumer price development has first resulted in 9 months of slight deflation, followed by two months of zero inflation and 12 months of gradually rising inflation. In February 2018, the rising trend will change slightly – from 1.7 to 1.6 percent – while from March to May 2018 inflation will stabilize at 1.6 percent.
Bron: CuracaoChronicle