Inflation in Dutch Caribbean down again

11/07/2013 15:00

Inflation on all three islands of the Dutch Caribbean fell further in the second quarter of 2013. On Bonaire it fell to 1.5 percent, on St Eustatius to 1.8 percent and on Saba to 1.0 percent. The largest decrease was on St Eustatius, where inflation is still the highest of the three islands.

Inflation in the Dutch Caribbean

Inflation in the Dutch Caribbean

Inflation falling since 2012

Inflation rates on the islands rose substantially in 2011, to levels as high as 6.3 percent on Bonaire, 10.9 percent on St Eustatius and 7.4 percent on Saba in the fourth quarter. The rates started to fall in the first quarter of 2012. This does not mean that prices in general decreased, but that the year-on-year price increases were smaller. In the space of three years, prices rose by 9.7 percent on Bonaire, by 18.3 percent on St Eustatius and by 12.1 percent on Saba.

Inflation down to 1.5 percent on Bonaire

Inflation fell to 1.5 percent on Bonaire in the second quarter of 2013. In the previous quarter consumer prices were still on average 2.5 percent higher than twelve months previously. Prices of motor fuels and motor oil had the largest downward effect on inflation. The effect of the substantial increase in prices of these products in the second quarter of 2012 has now worn off. The decrease in prices of among other things hairdressers, toiletries, food and telephone rates also had a downward effect on inflation on Bonaire.

St Eustatius inflation drops sharply, to 1.8 percent

On St Eustatius, inflation dropped sharply: from 3.9 percent in the first quarter of 2013 to 1.8 percent in the second quarter. Prices of recreation and culture accounted for a large part of this decrease. Price rates for the central antenna system went up considerably in the second quarter of 2012. The effect of this increase has now ended. Prices of food and clothes did not rise by as much as in the previous quarter and this also had a downward effect on inflation. Electricity prices had an upward effect on inflation on this island.

Slightly lower inflation on Saba

On Saba, inflation fell by 0.2 of a percent point in the second quarter of 2013, to 1.0 percent. Developments in prices of clothes and eating and drinking in cafés and restaurants pushed down inflation. Although prices in cafés and restaurants were still 3.4 percent higher than twelve months previously, thee 7.5 percent year-on-year increase in the first quarter was still substantially larger. Prices of electricity and water had an upward effect on Saba’s inflation.

Leo Peeters

Provisional figures
The figures for the second quarter of 2013 are provisional and will become definite when the figures for the third quarter of 2013 are published.

Source:

This article is also available in Papiamento.