Higher inflation on Bonaire and Saba

12/10/2016 15:30
The rate of inflation increased marginally on Bonaire and Saba in Q3 2016, but decreased on St Eustatius. The rates on Bonaire and Saba rose to 0.6 and 0.2 percent respectively. The CPI-based inflation rate on St Eustatius fell to -1.0 percent, according to Statistics Netherlands (CBS).

Inflation Caribbean Netherlands
 

Bonaire

On Bonaire, prices of goods and services were 0.6 percent up year-on-year, versus 0.4 percent in Q2. Price developments for food products and soft drinks were the main contributors to the inflation increase. On average, these prices were 0.4 percent higher than one year previously. Soft drink prices rose 3.2 percent compared to one year previously. Gas and petrol prices also drove inflation up.

In the past quarter, prices of food products and soft drinks were in fact below the level of the preceding quarter. Soft drinks, cheese and butter became cheaper. In the same period, gas prices rose by an average of 15 percent, petrol prices by more than 8 percent.

St Eustatius

On average, monthly expenditure of households on St Eustatius was 1.0 percent down year-on-year. The price level in Q2 was 0.1 percent down from one year ago. The lower inflation rate is almost entirely caused by electricity price developments. In Q3 2015 electricity prices soared by more than 20 percent, pushing up inflation over the next twelve months. This effect has worn off now and inflation is falling.

Food and soft drink prices also contributed to the lower inflation rate. They fell by 1.8 percent relative to one year previously. Prices of eggs, potatoes and pork, for example, declined. Due to petrol price developments inflation fell less rapidly.

Unlike on Bonaire, food and soft drink prices have risen slightly on St Eustatius in the past quarter, but just as on Bonaire, the price of petrol went up.

Saba

The inflation rate on Saba rose to 0.2 percent in Q3. Prices of natural gas and toiletries drove inflation up. Mouth care products, like toothpaste and mouthwash, became more expensive, but the inflation increase was modest because food prices declined. Food prices on Saba are on average 1.6 percent lower than one year ago. Fresh vegetables, milk, and sugar became cheaper in the past year.