The inflation rate in the Caribbean Netherlands increased substantially in the second quarter of 2014, just as in the first quarter. Following a period of extremely high inflation in 2011, the rate began to slow down in 2012, but picked up again during the first six months of this year.
On Bonaire, consumer prices were on average 2.2 percent higher in the second quarter than in the second quarter of 2013. The rates on St Eustatius and Saba were respectively 2.9 and 2.0 percent higher. Food prices in particular increased inflation on Bonaire and St Eustatius. On Saba, prices in the sector hotels and restaurants had the largest effect on inflation.
Food prices contribute to higher inflation rate on Bonaire
Out of the three islands, inflation went up most on Bonaire in the second quarter of 2014 and reached a level of 2.2 percent. In the first quarter, consumer prices were 1.3 percent up from the first quarter one year previously. Food prices increased considerably, which is the main cause for the higher inflation rate. Clothing, footwear, transport and shipping costs also contributed to inflation. Electricity prices fell, which had a downward effect on inflation.
Inflation rate highest on St Eustatius
With 2.9 percent, St Eustatius accounted for the highest inflation rate in the Caribbean Netherlands. In the first quarter of this year, the rate was 2.5 percent. Just as on Bonaire, food prices – especially bread prices – had an upward effect on inflation on St Eustatius. Petrol and airline ticket prices also contributed to the inflation increase, but electricity prices had a downward effect on inflation.
Inflation rate Saba up due to higher prices in the sector hotels and restaurants
The inflation rate on Saba climbed from 1.4 percent in the first quarter to 2.0 percent in the second quarter. The increase was predominantly caused by higher prices in the sector hotels and restaurants and higher prices for personal toiletry items. Electricity prices on Saba also fell marginally.
The status of the figures over the second quarter of 2014 is provisional. Definite figures will be released when the data on the third quarter are available.
Source: StatLine: Caribbean Netherlands