In the first quarter of 2017 Cayman’s Consumer Price Index increased by 1.7% in comparison to 2016’s first quarter. But what exactly does that mean for you the consumers?
If you feel like your dollar is not stretching as far as it used to, do not worry you are not going crazy. Prices and inflation rates on island are going up according to the Economics and Statistics Office.
“We see an increase in housing rentals, we see an increase for average prices for restaurants, hotels so that’s one factor”, says Director of ESO Maria Zingapan.
The latest ESO figures show the Consumer Price Index rose by 1.7% in comparison to last years first quarter. Maria Zingapan says demand factors and prices from the source of shipped items are the cause. “The other source of increase would be the prices from the source, the CPI in the United States increased by 2.5 percent in the first quarter of 2017 and so as their prices over there increase then you would tend to observe as well an increase in domestic prices of goods.” said Zingapan.
Restaurants and hotels up by 9.0%, clothing 4.7% even recreation by 2.9% are all being affected by the CPI. So the obvious question is what does this mean for the average consumer?
Ms. Zingapan said, “It may mean a reduction in terms of their purchasing power. It depends on how you will make adjustments to your purchasing pattern.”
Petroleum has risen by 6.4% so does this mean filling up our tanks will become a bigger burden on our pockets? Ms. Zingapan feels that is more difficult to predict.
“It’s kind of difficult to forecast for a number of reasons, one is geopolitical uncertainty which affects global oil prices and secondly there are some countries that have increased their production or reduced their stockpiling, it’s difficult to say that it will soon increase.”
Ultimately this means in some ways we will have to adjust our wallets accordingly. Living in paradise does not always come cheap.