Press release

DEPARTMENT OF STATISTICS (STAT) URL: www.stat.gov.sx Email: [email protected]

Press release Philipsburg, July 21st 2016

Consumer prices Sint Maarten June 2016 Prices have increased compared to April 2016 The Consumer Price Index for Sint Maarten has increased in the month of June 2016 by 0.8 percent compared to that of April 2016. When comparing average consumer prices over a twelve month period (June 2015 to June 2016), a decrease of 125 percent was recorded compared to the same period one year earlier. The current level of deflation (-0.3%) is comparable to that recorded in January 1986(-0.3%). This is evident from the data released by the Department of Statistics (STAT) today.

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Price changes between June & April 2016 The consumer price index for Sint Maarten has increased in the month of June 2016 by 0.8 percent compared to that of April 2016. The price index recorded in June 2016 is 126.7

WEIGHT

INDEX APRIL 2016

INDEX JUNE 2016

% CHANGE

Food

10%

198.2

197.4

-0.4

Beverages and tobacco

1%

146.6

148.0

1.0

Clothing & footwear

7%

110.9

111.6

0.6

Housing

39%

120.7

122.4

1.4

Household furnishing & appliances

6%

144.9

144.6

-0.2

Medical care

3%

115.3

118.0

2.3

Transport & communication

20%

105.2

105.9

0.7

Recreation & education

6%

106.4

106.5

0.1

Misc.

8%

120.8

121.8

0.8

100%

125.7

126.7

0.8

Expenditure Category

TOTAL

Expenditure Categories – overall increase In June 2016, seven of the nine expenditure categories became more expensive, whilst two became cheaper. Amongst the more expensive were the categories; ‘Beverages and Tobacco’ (+1.0%),‘Clothing and Footwear’ (+0.6%),‘Housing’ (+1.4%),‘Medical Care’ (+2.3%), ‘Transport & Communication’ (+0.7%),‘Recreation & Education’ (+0.1%) and ‘Miscellaneous’ (+0.8%). Whereas slight decreases were recorded for the expenditure category ‘Food’ (-0.4%) and ‘Household Furnishing & Appliances’ (-0.2%). Notable is the expenditure category ‘Food’ has been observing declining consumer prices over the past 4 months; significant is that a drop in consumer prices hadn’t been observed since mid2010.

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Food

FOOD EXPENDITURE CATEGORY 10% of CPI Grain +1.1 %

Other food resources -0.2%

Eating-out +0.4% Meat and Fish -0.5% Pre-cooked dishes +1.5% Sugar & Chocolate +0.5% Potatoes, Vegetables & Fruits -1.6%

Fats & Oils -0.7% Dairy Products -1.2%

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Within the expenditure category Food, it can be noted that five of the nine food groups became less expensive whilst four became more expensive. The following food groups recorded decreases; Meat and Fish (-0.5%), Fats & Oils (-0.7%), Dairy Products (-1.2%), Potatoes, Vegetables & Fruit (-1.6%) and other food resources (-0.2%). Whilst the food groups, Grain (+1.1%), Sugar & Chocolate (+0.5%), Pre-cooked dishes (+1.5%) and Eating-out (+0.4%) all became more expensive. More specifically the following products largely influenced the total price change within the food groups: ‘Grain’, was largely influenced by small breads (3.6%), white rice (+1.2%), cereal (+1.8%) and pasta (+3.3%). The food group ‘Meat & Fish’, was largely influenced by beef (-15.4%), oxtail (-3.0%), Spareribs (+2.3%), goat meat (-5.4%), pigtail (+6.4%) and poultry (+0.7%). The food group ‘Dairy Products’ was largely influenced by; canned milk (-2.6%), yoghurt (+4.2%), cheese (-3.4%) and eggs (-8.6%). The food group ‘Potatoes, Vegetables & Fruit’ was largely influenced by; potatoes (-2.2%), cabbage (+22%), tomatoes (-7.7%), bell peppers (-9.7%), other vegetables (-8.2%), spices (23.9%), dried beans (+14.9%), grapes (+9.0%), other citrus fruit (+20.8%), plantain(+9.3%) and raisins (+4.8%). The food group ‘Eating-out’ was largely influenced by; meals, snacks & soups (+0.9%),

1 Please note that the pie chart above depicts the share (weight) each food group carries toward the entire Food expenditure category, whilst the percentages indicate the price change within that food group.

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Housing

HOUSING EXPENDITURE CATEGORY 39% of CPI Energy expenses +8.2% Maintenance of dwelling -0.2%

Garden maintenance +0.5%

Dwelling costs +0.4%

Water +0.0%

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Within the expenditure category Housing, it is noted that one of the five product groups became less expensive whilst one remained stable and three became more expensive. The product group; ‘Maintenance of dwelling’ decreased by -0.2%. Whilst the product groups; ‘Energy expenses’, Garden maintenance’ and ‘Dwelling costs’ increased by +8.2%, +0.5% and +0.4% respectively. An increase in the consumer price of electricity by 8.1% and cooking gas cylinders by 9.2% largely influenced the total price change within the product group ‘Energy expenses’. The Product group: ‘Maintenance of dwelling’, was largely influenced by; paint (-0.7%), wood (-2.0%), other materials for maintenance of dwelling (-6.3%) and labour cost for maintenance of dwelling (+0.7%)

2 Please note that the pie chart above depicts the share (weight) each food group carries toward the entire Housing expenditure category, whilst the percentages indicate the price change within that product group.

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Transport & Communication

TRANSPORTATION AND COMMUNICATION EXPENDITURE CATEGORY 20% of CPI

Communication 0.0%

Transport services 0.0%

Vehicle Purchase 0.0%

Vehicle Expenses +2.6%

3 Within the expenditure category Transport & Communication one of the four product groups became more expensive whilst three remained stable. The product group ‘Vehicle Expenses’ recorded a price change, namely an increase of 2.6%. The price change amongst the products; tires (-2.9%), engine parts (-0.4%), mufflers (+14.0%), gasoline (+8.5%) and diesel (+18.7%) largely influenced this product group.

3 Please note that the pie chart above depicts the share (weight) each food group carries toward the entire Transport & Communication expenditure category, whilst the percentages indicate the price change within that product group.

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Sint Maarten Consumer Price Index a Broader Perspective Though the trend over the past 3 year period depicts increasing consumer prices; we note that prices have steadily declined during the period August 2015 through April 2016; this is evident in the bar chart below. Significant is the recent sharp increases recorded during the past 3 month period. Over the last 3 years; consumer prices have been increasing however at a slower rate; with year to year increases of 2.6 and 0.3 points during the period 2013 - 2015; and unchanged in 2016 over 2015.

CONSUMER PRICE INDEX SINT MAARTEN JUN 2013 - JUN 2016) 128.0 127.0 126.0 125.0 124.0 123.0

121.0

JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN

122.0

2014

2015

2016

3-year Overview The trend line below indicates that inflation on Sint Maarten over the prior 3-year period has been declining. This continued decline has now led to a rate of deflation in June 2016 at a rate of -0.3%. The current level of deflation (-0.3%) is

comparable to that recorded in January 1986(-0.3%). 3.5

2.7 %

INFLATION SINT MAARTEN (JUN 2013- JUN 2016) 2.4 %

2.5 2.0

1.2 %

1.5 1.0

-0.3 %

0.5 0.0

2014

2015

JUN

APR

FEB

DEC

OCT

AUG

JUN

APR

FEB

DEC

OCT

AUG

JUN

APR

FEB

DEC

OCT

AUG

-0.5 JUN

Inflation (% change of the 12-month average

3.0

2016

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Inflation Sint Maarten April 2016 The 12-month average of consumer prices was -0.3 percent lower in June 2016 than a year earlier. This represents a decrease in the inflation rate of 125 percent within this period. Inflation for the Major Expenditure Categories Three of the nine expenditure categories account for 69 percent of Household expenditure; these are Housing’ (39%), ‘Transportation and Communication’ (20%) and ‘Food’ (10%). When looking at the monthly developments of inflation amongst these categories we note that two of the three have recorded deflation. Notable is the level of inflation recorded for the expenditure category ‘Food’ continues to trend downward. Monthly developments amongst the three major expenditure categories are illustrated in the bar chart below.

Inflation on Sint Maarten for the Major Expenditure Categories Food

6.5%

1.8%

1.5%

1.7%

1.2%

1.5%

0.9%

1.4%

1.2%

0.2%

1.1%

Transport & Communication

7.2%

7.2%

7.1%

7.0%

6.9%

6.7%

6.6%

Housing

0.9%

7.1%

0.7%

0.6%

7.1%

0.6%

7.0%

0.4%

6.9%

0.3%

Total

6.9%

-0.8%

-0.9%

-1.3%

-1.6%

-1.9%

-2.1%

-2.1%

-0.1%

-1.0% -2.2%

-1.3% -2.3%

-1.5% -2.3%

-1.7% -2.3%

6.5%

6.2%

5.8%

0.2%

-0.2% -0.6%

6.8%

-1.8%

-1.9%

-0.2%

-2.0%

-0.2% -0.3%

-2.0%

-1.9%

-1.9%

-2.6% -3.2%

-3.4%

-3.2%

-0.3%

-3.0%

-2.8%

201502 201503 201504 201505 201506 201507 201508 201509 201510 201511 201512 201601 201602 201603 201604 201605 201606

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