Scribd Logo
Upload

Welcome to Scribd!

  • 135 views

    Consumer Price Index - May 11

    Uploaded by

    Patricia b
    The consumer price index (CPI) in May 2011 showed an annual inflation rate of 2.5%, up from 2.4% in April 2011. The health and personal care sector contributed most significantly to the year-over-year price increase at 8.1%. Food prices increased 0.4% month-over-month, while transportation costs decreased 3.6% due to lower airfares and hotel costs. The all-items index fell slightly from 116.6 to 116.3 between April and May 2011.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Consumer Price Index - May 11

    Uploaded by

    Patricia b
    135 views4 pages
    The consumer price index (CPI) in May 2011 showed an annual inflation rate of 2.5%, up from 2.4% in April 2011. The health and personal care sector contributed most significantly to the year-over-year price increase at 8.1%. Food prices increased 0.4% month-over-month, while transportation costs decreased 3.6% due to lower airfares and hotel costs. The all-items index fell slightly from 116.6 to 116.3 between April and May 2011.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The consumer price index (CPI) in May 2011 showed an annual inflation rate of 2.5%, up from 2.4% in April 2011. The health and personal care sector contributed most significantly to the year-over-year price increase at 8.1%. Food prices increased 0.4% month-over-month, while transportation costs decreased 3.6% due to lower airfares and hotel costs. The all-items index fell slightly from 116.6 to 116.3 between April and May 2011.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    135 views4 pages

    Consumer Price Index - May 11

    Uploaded by

    Patricia b
    The consumer price index (CPI) in May 2011 showed an annual inflation rate of 2.5%, up from 2.4% in April 2011. The health and personal care sector contributed most significantly to the year-over-year price increase at 8.1%. Food prices increased 0.4% month-over-month, while transportation costs decreased 3.6% due to lower airfares and hotel costs. The all-items index fell slightly from 116.6 to 116.3 between April and May 2011.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 4

    CONSUMER PRICE INDEX

    MAY 2011 RATE OF INFLATION Consumers paid 2.5 per cent more in May 2011 than they did a year ago for the basket of goods and services included in the Consumer Price Index (CPI). This rate of inflation edged higher than the 2.4 per cent recorded in April 2011. Between April and May 2011, the average cost of goods and services in the Consumer Price Index fell 0.3 per cent. The all-items index decreased from 116.6 to 116.3 index points in May. This means that the basket of goods and services that cost $100.00 in April 2006 now cost $116.30. YEAR-TO-YEAR ANALYSIS The Health & Personal Care sector was the largest contributor to the twelve-month increase in the Consumer Price Index at 8.1 per cent. This sector contains items such as the cost of doctors visits, health insurance, prescribed & self-prescribed drugs and toiletries. The Rent and Food sectors also impacted strongly on the annual rate of inflation, as price shifts in these sectors were 1.6 per cent and 2.2 per cent, respectively.

    Inflation Rate 2.5%


    The compilation of the CPI involves the 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.
    Period 2010 May Jun Jul Aug Sep Oct Nov Dec 2011 Jan Feb Mar Apr May Index

    SUMMARY STATISTICS
    Monthly Annual per cent Change +2.8 +2.6 +2.3 +2.0 +3.4 +3.0 +2.3 +2.7 Period 2009 Q1 Q2 Q3 Q4 2010 Q1 Q2 Q3 Q4 2011 Q1 Quarterly Index Annual per cent Change +4.1 +1.5 +1.0 +0.8

    113.5 113.4 113.7 114.1 115.3 115.5 114.6 114.6

    110.3 110.5 111.5 111.9

    112.1 113.6 114.4 114.9

    +1.6 +2.8 +2.6 +2.7

    114.6 115.3 115.2 116.6 116.3

    +2.2 +3.2 +2.5 +2.4 +2.5

    115.0

    +2.6

    BERMUDA CONSUMER PRICE INDEX

    MONTH-TO-MONTH ANALYSIS
    Rent Health & Personal Care

    The Rent sector advanced 0.3 per cent due to the 3.6 per cent rise in building material costs. Rental units not subject to rent control were unchanged for the month.
    Food

    The Health & Personal Care was unchanged in May despite minimal price shifts in the cost of medical supplies.
    Education, Recreation & Reading

    On average, food prices edged up 0.4 per cent in May. Among the main items contributing to the increase were codfish (8.1 per cent), bread (5.0 per cent) and top round beef (5.0 per cent).
    Clothing & Footwear

    The Education, Recreation & Reading sector dropped 0.1 per cent in May as a result of a 2.0 per cent and 0.7 per cent decrease in the capital costs of boats and televisions, respectively.
    Transport & Vehicles

    A 2.2 per cent increase in dry cleaning costs led to a 0.1 per cent increase in the Clothing & Footwear sector in May.
    Household Goods, Services & Communications

    The Transport & Vehicle sector decreased 3.6 per cent for the month. The decline was attributed to a 14.8 per cent reduction in the price of airfares and an 11.7 per cent drop in the cost of overseas hotel accommodations. In contrast, there was a 2.6 increase in the capital cost of cars.

    The Household Goods, Services & Communications sector was unchanged for the month of May.
    Tobacco & Liquor

    The Tobacco & Liquor sector was static for the month.
    Fuel & Power

    The Fuel & Power sector recorded no movement in May as the fuel adjustment rate remained unchanged.

    COMPUTING PRICE INCREASES


    The Department of Statistics receives numerous 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.statistics.gov.bm. a) Month-to-Month Price Change b) Year-to-Year Price Change (annual rate of inflation)

    The price change between November and December, 2009 is calculated as follows:
    = Dec 09 index number - Nov 09 index number 100 Nov 09 index number 111 . 6 112 . 0 100 112 . 0

    The price change between December, 2008 and December, 2009 is calculated as follows:
    = Dec 09 index number - Dec 08 index number Dec 08 index number 111 . 6 110 . 5 100 110 . 5 100

    = 0 .3 %

    = 1 .0 %

    DEPARTMENT OF STATISTICS

    BERMUDA CONSUMER PRICE INDEX

    APRIL 2006 = 100


    Household Goods, Services & Communications

    All Items 2004 WEIGHT

    Food

    Rent

    Clothing & Footwear

    Tobacco & Liquor

    Fuel & Power

    Transport & Vehicles

    Education, Recreation & Reading

    Health & Personal Care

    1000

    146

    325

    37

    20

    30

    140

    139

    71

    92

    ANNUAL AVERAGE ( per cent) 2005 2006 2007 2008 2009 2010 +3.1 +3.1 +3.8 +4.8 +1.8 +2.4 +3.0 +2.0 +3.5 +5.6 +5.4 +3.0 +2.8 +3.9 +2.6 +2.4 +1.9 +1.3 +2.1 +3.3 +0.2 +2.7 +3.0 +2.4 +2.6 +2.1 +1.9 +9.3 +5.9 +1.9 +5.6 +9.5 +5.5 +31.8 -6.3 -0.8 +1.4 +1.4 +2.2 +2.6 +0.7 +1.6 +5.1 +1.2 +6.6 +3.9 -4.3 +1.8 +5.1 +3.8 +4.8 +5.1 +5.3 +2.5 +2.4 +5.7 +6.8 +6.6 +6.7 +8.1

    MONTHLY ( per cent)

    2009 Apr May June July Aug Sept Oct Nov Dec 2010 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2011 Jan Feb Mar Apr May May 11

    +0.7 -0.2 +0.1 +0.5 +0.6 -0.3 +0.5 -0.1 -0.3

    Nil +0.3 -0.1 -0.3 +1.4 Nil Nil +0.3 -0.7

    +0.1 +0.1 -0.1 -0.1 +0.1 +0.3 Nil +0.1 +0.1

    +1.7 Nil Nil +0.9 Nil Nil -0.4 Nil Nil

    +0.3 +0.1 +0.3 +0.5 +0.9 +0.1 -0.3 +0.3 +1.1

    -0.1 Nil Nil -3.6 Nil Nil Nil +0.1 Nil

    +0.5 +0.2 +Nil +1.0 Nil +0.4 +0.1 Nil +0.3

    +1.6 -3.4 +0.3 +4.4 +2.6 -4.2 +3.1 -1.8 -2.2

    +0.4 -0.6 +0.7 +0.3 +0.1 +1.8 Nil Nil -0.1

    +2.8 +2.1 +0.2 Nil +0.1 +0.2 +1.5 Nil -0.1

    +0.5 -0.5 +0.7 +1.3 -0.3 -0.1 +0.2 +0.4 +1.1 +0.2 -0.8 Nil

    +2.1 -0.8 +1.2 +0.2 -1.0 +0.1 +0.1 +2.0 -0.4 +0.5 +0.1 -1.6

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

    -2.6 Nil Nil +6.0 Nil Nil +0.3 Nil Nil -0.7 Nil Nil

    -0.1 -0.5 -0.1 Nil -0.1 +0.1 +0.2 +0.2 -0.1 +0.3 +0.2 +0.5

    +0.2 +0.2 Nil Nil Nil Nil Nil +4.0 Nil +3.9 Nil Nil

    +0.1 -0.1 Nil Nil Nil -0.5 Nil +1.0 +0.2 -0.1 Nil Nil

    +1.9 -2.8 +3.4 +3.1 -1.8 -1.2 +1.1 -2.4 +7.1 -0.9 -6.3 +1.5

    +0.1 Nil +0.1 +0.1 +0.2 Nil Nil +0.1 +1.5 +0.6 Nil +0.1

    Nil +0.1 Nil +6.0 Nil +0.6 +0.1 Nil +0.2 +0.4 Nil Nil

    Nil +0.6 -0.1 +1.3 -0.3 116.3

    +0.8 +0.8 Nil -0.6 +0.4 120.5

    +0.1 +0.1 +0.2 Nil +0.3 110.9

    -0.1 Nil Nil +4.7 +0.1 115.6

    +0.6 +0.7 +0.2 Nil Nil 124.0

    Nil Nil Nil Nil Nil 137.8

    +0.7 Nil -0.1 -0.1 Nil 108.5

    -1.4 +3.4 -1.3 +3.8 -3.6 104.9

    +0.1 -0.1 +0.1 +0.2 -0.1 122.8

    Nil Nil +0.1 +6.6 Nil 142.5

    May '11 May '10

    +2.5

    +2.2

    +1.6

    +4.3

    +3.1

    +8.1

    +1.1

    -0.9

    +2.5

    +8.1

    BERMUDA CONSUMER PRICE INDEX

    WHAT IS INDEX?

    THE

    CONSUMER

    PRICE

    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 & Vehicles Household Goods, Services & Communications Education, Recreation & 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 Consumer Price Index (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


    2007 2008 4.8 3.8 2.3 3.6 2009 1.8 2.7 0.3 -0.5

    2010 2.4 1.6 1.8 4.6

    May 11 +2.5 +3.6 +3.7 +5.2

    CONCEPTS AND DEFINITIONS


    Base Period

    Bermuda 1 United States Canada2 3 United Kingdom

    3.8 2.8 2.2 2.3

    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 2006.
    Price Index Number

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

    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 79.1 for January 1998 with 82.9 for January 2000, reveals that prices have increased by 4.8 percent.
    Laspeyres Equation

    Published by the Government of Bermuda July 2011 The Cabinet Office Department of Statistics Cedar Park Centre, 48 Cedar Avenue, Hamilton HM 11 P.O. Box HM 3015 Hamilton HM MX, Bermuda Tel: (441) 297-7761, Fax: (441) 295-8390 E-mail: [email protected] Website: www.statistics.gov.bm

    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 2006.

    DEPARTMENT OF STATISTICS

    You might also like