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Inflation in the Caribbean Netherlands rising

Inflation in the Caribbean Netherlands rising

SABA/SINT EUSTATIUS - In Q2 2021, consumer goods and services on Bonaire were 0.2 percent more expensive than one year previously. The inflation rate was still -3.2 percent in the previous quarter. On St Eustatius, prices decreased by 1.2 percent year-on-year, after they had fallen by 4.1 percent in the first quarter.

On Saba, the inflation rate rose from -1.3 percent to 1.0 percent in Q2 2021. This is reported by CBS on the basis of the consumer price index for the Caribbean Netherlands.

All three islands saw an increase in inflation compared to Q1 2021. What plays a role here is that the effect of the allowances[1] for electricity, drinking water and internet was less pronounced in comparison with the same quarter last year. The government has provided these allowances since May last year. This means that the measures affected prices in both the second quarter of 2020 and the second quarter of 2021. As of January 2021, an additional subsidy on internet subscriptions is provided to the amount of 20 US dollars per household on St Eustatius and 10 US dollars per household on Saba.

Inflation up on St Eustatius

In Q2 2021, consumer prices on St Eustatius were 1.2 percent lower than one year previously. The year-on-year decrease was 4.1 percent in Q1 2021.

Compared to the previous quarter, consumers paid 0.9 percent more for goods and services in Q2. Transport costs rose by 4.7 percent due an increase in petrol and diesel prices.

Inflation on Saba rising

Consumers on Saba paid on average 1.0 percent more for goods and services in Q2 2021 year-on-year. In Q1 2021, the inflation rate still amounted to -1.3 percent.

Compared to the previous quarter, consumer prices were 1.5 percent higher in Q2. Transport became 5.7 percent more expensive due to price increases of petrol and diesel. Prices of toiletries rose by 3.4 percent relative to Q1 2021. 

Inflation on Bonaire at 0.2 percent

The year-on-year increase in inflation on Bonaire is mainly caused by increased housing costs. Rents were 10.2 percent higher than in Q2 2020. This is due to the introduction of the Caribbean Netherlands Rental Market Measures Act for Bonaire[2] as of 1 April 2021. Any compensation for

social rents is not included in the calculation of the price index. CBS considers this rent compensation as a personal current transfer.

Relative to the previous quarter, prices on Bonaire rose by an average of 1.5 percent in Q2 2021. Rents increased by 9.8 percent compared to the previous quarter. Fuel prices went up as well. Transport costs rose by 3.6 percent due to an increase in the price of petrol and diesel. Prices of self-care medicines were up by 6.7 percent.

Average food prices remained fairly stable in Q1 relative to the previous quarter, although fresh fruit increased by 5.4 percent and vegetables by 2.6 percent in price. (RCN Caribbean Netherlands)

Provisional figures

Figures referring to Q2 2021 are provisional and will be definitive upon publication of the figures over Q3 2021.

Sources:

StatLine: Caribbean Netherlands; consumer price index

https://opendata.cbs.nl/#/CBS/en/dataset/84046ENG/table?dl=22EB4

[1] News article regarding the allowances for electricity, drinking water and internet: https://english.rijksdienstcn.com/latest/news/2020/may/5/reduction-in-costs-for-households-and-companies-caribbean-netherlands

[2] Caribbean Netherlands Rental Market Measures Act: https://english.rijksdienstcn.com/latest/news/2021/march/23/reinforcement-of-the-rental-market-on-bonaire

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