(CNS): The Consumer Price Index (CPI) increased by 6.4% in the third quarter of 2021 compared to the same period last year as all twelve of the divisions assessed to measure inflation in the economy recorded increased prices. The new report from the Economics and Statistics Office also shows a spike from the 0.2% rise recorded in the spring.
Housing and utilities caused much of the price pain for ordinary people, with electricity increasing by over 31%. That was compounded by an increase of almost 16% in the cost of water. The official figures reflect an increase of 2% in rent paid by tenants but the index for imputed rentals for owner-occupiers which went up by 8.6%, suggesting that some people are paying much more in rent this year than in 2020.
These increases came alongside another surge in fuel costs of 20% between June and September. The ESO also recorded a 3.3% increase in food prices, though this does not reflect the reality of continued price increases at the grocery store over the last couple of years.
The spikes in some food prices, such as a more than 11% hike in the cost of meat during this quarter, follows a similar price rise in the spring. The 10% increase on the price of fruit during the third quarter this year comes after a 10% increase in the second quarter, compounding the problem that inflation presents for ordinary families on low income or retirees on fixed incomes.
Meanwhile, as the man in the street struggles to make ends meet, the economy grew throughout 2021 by 1.4%, fuelled largely by the construction sector, which grew by 13% as Cayman’s dependence on development and its worrying consequences becomes evermore apparent.
While the workforce becomes dependent on building for jobs, the cost of land increases as developers focus on luxury products to sell to overseas investors. The total value of property transfers increased to $722.9 million from $325.5 million compared to the previous quarter.
But as developers profited from the construction boom, 59 families lost their homes through foreclosures valued at US$16.4 million.
See the latest reports on the ESO website.
