First Period Of No Inflation Since December 1974
“April 2020 marks the first period of no inflation since December 1974,” according to the recently released Consumer Price Index [CPI] for April 2020.
Minister for the Cabinet Office Wayne Furbert said, “In April 2020 consumers paid the same as they did for the CPI basket of goods and services in April 2019. Between March 2020 and April 2020 the average cost of all goods and services increased 0.1 percentage points.”
Minister Furbert added, “It should be noted however that some price data used to produce the CPI index was not collected in April 2020 due to some unavailable goods and services, non-response from open stores and the temporary store closures caused by the Coronavirus [COVID-19] pandemic [ See Table 1 on page four of the publication]. As a result of COVID-19, in-person field collection was suspended and, where possible, prices were collected via alternative methods such as online and email.
“Six of the nine sectors in April 2020 had missing prices which were imputed: Rent, Clothing & Footwear, Household Goods, and Services and Supplies, Transport & Foreign Travel, Education, Recreation, Entertainment & Reading and Health & Personal Care.
“Table 2, on page five of the publication, provides March 2020 and April 2019 price metadata for comparison. All missing prices were imputed by targeted mean imputation and the carry forward method.
“The Health & Personal Care sector was the largest contributor to the year-over-year change, increasing 3.2 per cent. In addition, the Transport & Foreign Travel sector [-5.0 per cent] and the Rent sector [-1.8 per cent] impacted strongly on the annual rate of inflation.
“Between March 2020 and April 2020 the Tobacco & Liquor sector rose 0.8 per cent, as the average price of wine and beer increased 17.2 per cent and 0.9 per cent, respectively.
“On average, food prices rose 0.8 per cent for the month. Among the items contributing to the increase were fresh & frozen spare ribs [+10.2 per cent], fresh & frozen stewing beef [+6.6 per cent] and pineapples [+5.6 per cent].”
The full April 2020 Consumer Price Index follows below [PDF here]:
BTW no inflation is a good thing.
Nope – it is a sign of a depressed economy.
Agreed, a very depressed economy. No wonder there is no word on the mythical price gouging that the PLP loves to trumpet every so often. Shortly there will be deflation, then the real problems begin.
Voters may leave.
It’s a sign of high unemployment and elevated levels of poverty, So get used to it,
If anyone really believes that there’s no inflation on this island they ought to talk to seniors or anyone on a fixed or reduced income.
‘No inflation’ , in Bermuda ? LOL
(ps , and we haven’t even started feeling the economic effects of our debt and the covid impact yet)
LOL
Wayne, sit down
OK, not all data could be collected but inflation has been falling for a while now.
If a fall in the inflation rate is due to depressed demand, it could create deflationary pressures which make it hard to boost economic growth. It is worth bearing in mind governments usually target an inflation rate of 2%. If inflation falls from 10% to 2%, this will tend to have economic benefits. If inflation falls from 3% to 0%, this could indicate a depressed economy.
and our inflation has been on a general downward trend
“Minister Furbert added, “It should be noted however that some price data used to produce the CPI index was not collected in April 2020 due to some unavailable goods and services, non-response from open stores and the temporary store closures caused by the Coronavirus [COVID-19] pandemic … As a result of COVID-19, in-person field collection was suspended and, where possible, prices were collected via alternative methods such as online and email.”
How about “in-person field collection was suspended and, where possible, prices were collected via alternative methods such as online and email” but where not possible we used our best guess. And the “statistic” will go into official records for the year 2020.
Not good at all. Quite worrying.
Going to be interesting hearing Vance Campbell defend this when he comes asking for my vote.
I doubt he will come knocking.
LOL, quite true, would the opportunity for a spirited debate though…
No inflation. Sure.
Food was up 0.8% and the selections were limited.
Health insurance was up 1.2% and we’re not even counting the whole new category of surcharges being added by dentists and others for Covid-19 protections, the cost of which is not covered by health insurance.
But don’t worry, rents were down 0.7% as people lost their jobs and moved in with friends and family (not THOSE friends and family).
The cost of airfares were down 8.0% as people were trapped in lockdown and those that could leave, left.
But don’t worry, low inflation figures are all good right?