Consumer prices in December – Prices 0.2 percent higher compared to November; Inflation in 2016 was 0.0 percent
WILLEMSTAD - The consumer price index of Curacao in the month of December 2016 increased by 0.2 percent compared to November 2016.
Measured over the twelve months to December 2016, prices remained stable compared with the same period a year earlier.
The major price changes in December 2016 were in the spending categories "Food" and "Transport and Communication".
Throughout the year 2016, the impact of the spending category "Food" had the largest upward effect on inflation of prices, while the biggest inflation-reducing effect can be attributed to the spending category "Transport and Communication".
This is evident from the data that the Central Bureau of Statistics (CBS) announced.
Price change in Curaçao between November and December 2016
The consumer price index (CPI) of Curaçao in the month of December 2016 increased by 0.2 percent compared to the month of November 2016, from 123.9 to 124.2.
In December 2016, the main price changes were in the spending categories "Food" (+ 0.4%) and "Transport and communication" (+ 0.4%). The spending category "Food" refers mainly to the higher cost of food group "potatoes, fruit and vegetables" by 2.3 percent, while the price development of the spending category "Transport and Communication" was mainly affected by the price hike of petrol by 3 percent and the fall in prices of diesel by 2.5 percent.
Price change in Curacao between December 2015 and December 2016
The consumer price index increased between December 2015 and December 2016 from 123.2 to 124.2. This is an increase of 0.8 percent. As far as the average price of consumer goods and services goes, this figure shows that the month of December of last year was 0.8 percent higher compared with December of the year before.
Inflation in Curaçao for the calendar year 2016
Inflation can be defined as a long-term (minimum 12 months) economic process of a general rise in prices, resulting in inflation (i.e. decline in purchasing power of money) and increase in the cost of living. It can be caused by more expensive imports, higher labor costs, higher other operating expenses c.q. production costs, the market forces of supply and demand (scarcity of goods/services), higher profit margins and an increase in the money supply in circulation.
The twelve-month average consumer prices in Curaçao in December 2016 was at the same level as in December 2015. This means that the inflation rate in December 2016 is nil, thus 0.0 percent. An inflation rate of 0.0 percent implies actually that over the entire calendar year, price increases and price reductions of consumer goods and services have kept each other in balance.
The inflation rate in December 2016 (0.0%) is also the inflation rate for the full year 2016. Consequently, inflation in Curacao for the full year 2016 is 0.0 percent, represented by the stabilization of the twelve-month average consumer price index (123.6) in December 2016 compared to December 2015.
Inflation in Curaçao during the past 20 years (1997-2016)
Over the past 20 years, (1997-2016) inflation on Curaçao has had a strong fluctuating image, ranging from a minimum of -0.5 percent (2015) to a maximum of 6.9 percent (in 2008), and resulting in an average of 2.3 percent per year.
The inflation rate of 0.0 percent in Curaçao in December 2016 is, at the same time, the inflation over the year 2016. It is the first time in Curacao that the inflation over a calendar year is nil. In concrete terms, the inflation rate of 0.0 percent on the island in 2016 as a whole, on average for the country Curaçao, consumer prices, cost of living and purchasing power remained stable in 2016 compared to the year before.