Consumer Price Index: Inflation Decreased 0.8%
Consumers paid 1.5 per cent more in December 2014 than they did a year go for the basket of goods and services included in the Consumer Price Index [CPI]. The level of inflation decreased 0.8 percentage points from the 2.3 per cent measured in November 2014.
Between November and December 2014, the average cost of goods and services in the Consumer Price Index decreased 0.5 per cent. The all-items index fell to 124.3 index points in December. This means that the basket of goods and services that cost $100.00 in April 2006 now cost $124.30.
The decline in the Fuel & Power sector led to a lower rate of inflation in December. The annual decline of the Fuel & Power sector was measured at -8.2 percent, led by the fuel adjustment rate, which was the lowest measured since September 2010. The Transport & Vehicle sector also decreased yearover-year, declining 2.0 per cent. Gasoline prices continued to fall as crude oil prices decline.
The full December 2014 Consumer Price Index is below [PDF here]:
We need to be careful. The last thing we want is a declining population and negative inflation. Obviously oil prices have made the major difference but the last thing we need is a deflationary cycle ….
“The last thing we want is a declining population”
Do you really think that could ever happen in Bermuda? lol