Inflation rate at 4.4 percent
-- prices rise 0.6%
by Mark Ramotar
Guyana Chronicle
September 6, 2003

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THE retail prices of goods and services monitored for the Urban (Georgetown) Consumer Price Index basket of goods in the month of July 2003 rose by 0.6%, according to the Bureau of Statistics.

The Bureau, in a statement yesterday, attributed the slight increase to an upward movement in the value of the index from 182.1 to 183.2. Consequentially, the overall year-to-date inflation rate for the period December 2002 to July 2003 increased to 4.4%. It also led to 5.8% increase in the annual (month-to-month) inflation rate for the period July 2002 to July 2003.

There were three primary groups of the basket that was responsible for the 0.6% increase in the price of consumer items for the month of July 2003. The groups were food, furniture and transport and communication, the prices of items within these groups rose by 0.9%, 0.2% and 2.8% respectively.

The sub-categories that were significant contributors to the increases in the Food group were meat, fish and eggs (1.6%), this was as a result of increases in the price of stew beef (1.0%), frozen chicken (2.2%), eggs (2.7%), steak sirloin (2.7%), other steak (2.7%) and shoulder pork (14.1%).

There was a 1.8% increase in the Milk and Milk products sub-group, which was as a result of increased prices in powdered milk (0.3%), cheese (2.3%) and pasteurized milk (29.9%).

The 1.5% increase in the sub-category of condiments and spices was as a result of increases in the prices of onions by 0.8%, curry powder by 0.8%, red peppers by 15.8%, celery by 3.4%, tomato ketchup by 2.9% and baking powder by 1.6%.

The bureau also stated that fruits and fruit products sub-group rose by 3.3% due to increases in the price of oranges (1.6%), bananas (7.1%), papaws (7.5%), limes (14.9%), pineapples (7.7%) and grapes (1.9%).

The sub-category of Alcoholic beverages registered a 0.8% increase as a result of increased prices in the following items - soft drinks (3.3%), coffee extract (0.4%), ground coffee (0.8%), tea (0.1%) and malta (2.0%).

It said the final sub-category within the food group that contributed to the 0.6% increase was tobacco and tobacco products, that is, the cost of cigarettes rose by 1.0% in the month of July 2003.

The Bureau noted that the increases mentioned were not the only increases but were the significant ones. It said despite these increases there were also simultaneous decreases in the prices of other items.

Within the non-food category, the bureau said furniture, which rose overall by (0.2%), there were recorded increases in the price of mattress (16.2%), and in the sub-category of cleaning materials; soap prices rose by (0.5%) and soap powder by (0.5%).

The other group in which increases were also observed was Transport and Communication (2.8%). The bureau said this was attributed to an increase in the cost of personal transport equipment (0.2%), gasoline (4.0%) and a notable increase in the cost of postage stamps by 281.7%.

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