January 2021 Consumer Price Index Report

April 23, 2021 | 0 Comments

Following a 0.3% increase in annual inflation for December 2020, consumers paid -0.3% less than they did a year ago for the basket of goods and services included in the Consumer Price Index [CPI].

A Government spokesperson said, “Today, Minister for the Cabinet Office the Hon. Wayne L. Furbert, JP, MP, released the January 2021 Consumer Price Index [CPI] report.

The Minister explained, “In January 2021 consumers paid 0.3 per cent less for a basket of goods and services, than they did in December 2020.

“The Transport & Foreign Travel sector was the largest contributor to the 12-month decline in the CPI, down 5.3 per cent. Year-over-year, residents paid less for overseas hotel accommodations [-20.4 per cent] and airfare [-13.7 per cent]. The Fuel & Power and Rent sectors also impacted strongly on the annual rate of inflation, sliding 2.4 per cent and 2.1 per cent, respectively.”

“Between December 2020 and January 2021 the average cost of goods and services increased 0.3 percentage points.

“Additional areas of note between December 2020 and January 2021 are as follows:

  • Rent sector prices edged up 0.5 per cent for the month. The increase was fuelled by a 0.1 per cent rise in rent-controlled properties and rental units not subject to rent control climbing 0.9 per cent.
  • The Transport & Foreign Travel sector advanced 1.5 per cent in January. Factoring into the increase was a 3.6 per cent rise in the average cost of overseas car rentals and a 3.4 per cent jump in the average price of premium fuels.
  • Due to a 3.2 per cent increase in the fuel adjustment clause the Fuel & Power sector rose 1.0 per cent for the month.
  • The Food sector fell 0.1 per cent for the month. Consumers paid less for local and imported potatoes [-7.4 per cent], fresh and frozen leg of lamb [-6.4 per cent] and fresh and frozen pork loins [-3.5 per cent].

“In summary, each month, the Government measures the annual rate of inflation and the monthly rate of inflation. Annual are changes from same month last year, and monthly are the changes from month to month.

“The January 2021 Consumer Price Index is available online here.

“Lastly, each of us has a role to play in stopping the spread of the coronavirus. Follow Public Health guidelines, wear a mask, practice good hand hygiene, maintain physical distance and download the WeHealth Bermuda app. Do the research, talk with your doctor and make an informed decision about getting the Covid-19 vaccine.”

The full January 2021 Consumer Price Index follows below [PDF here]:

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