McTaggart: Cayman’s reliance on imports fuels rising inflation

The rise in the Cayman Islands’ inflation centers around the inflation of overseas countries from which the country imports goods.

So says Finance Minister Hon. Roy McTaggart.

Cayman’s Consumer Price Index rose 3.2 percent in the first quarter of 2018 versus the same period in 2017. It has climbed in seven out of the last 10 years.

“No consolation to the consumer, but it’s not unexpected given what you see happening in North America with respect to inflation rearing its ugly head there,” Mr. McTaggart said. “You know, the average person might not appreciate the fact that 80 percent of our trade and business that we do in this country is with the North American market. So, essentially, what we are is importers of our own inflation.”

Mr. McTaggart says the country can create its own inflation as well. He pointed to rising prices in areas like home rentals and real estate.