Central Bank confirms rising costs as inflation edges up

Following unprecedented low levels in 2020, the price of crude oil continued to increase this year, leading to a rise in the price of goods and services across most categories so far this year, The Central Bank of The Bahamas (CBOB) has revealed.

During the twelve months to June 2021, the inflation rate moved higher to 0.90 percent from 0.88 percent a year earlier, the bank has revealed. This coincided with a 42.3 percent increase in crude oil prices to $72.94 per barrel from January to September this year.

“Underlying to this outturn, average prices for clothing and footwear rose by 12.7 percent, vis-à-vis an 8.4 percent reduction the prior year. Further, average cost increases were recorded for miscellaneous goods and services (2.7 percent), food and non-alcoholic beverages (2.3 percent) and housing, water, gas, electricity and other fuels (1.3 percent), following declines a year earlier; while average inflation quickened for furnishing, household equipment and routine household maintenance (2.5 percent),” the Central Bank revealed in its Monthly Economic and Financial Developments Report for September.

“Providing some offset, inflation moderated for alcoholic beverages, tobacco and narcotics (2.5 percent), health (0.9 percent) and restaurants and hotels (0.2 percent). In addition, average prices declined for recreation and culture (3.3 percent) and transport (2.3 percent), following gains a year earlier; while the falloff in average costs for communication extended to 4.5 percent. Meanwhile, the average cost decrease slowed for education (1.6 percent).”

This global trend of higher prices was seen in the US, which also reported that consumer price inflation edged up by 10 basis points to 0.4 percent in September over the prior month, reflecting higher prices for energy, food and shelter.

The Central Bank stated that inflationary pressures are anticipated to remain moderately contained despite the rise in international oil prices. 

The post Central Bank confirms rising costs as inflation edges up appeared first on The Nassau Guardian.

source https://thenassauguardian.com/central-bank-confirms-rising-costs-as-inflation-edges-up/