Consumer prices in Curacao: May 2016 – Prices 0.1 percent lower than in the month of April 2016
WILLEMSTAD - The Curacao consumer price index fell in the month of May 2016 by 0.1 percent. Measured over the twelve months to May 2016, an average price decrease of 0.5 percent can be observed compared to the same period.
In May the most notable price changes occurred in the spending categories "Living" and "Transport and communication".
This is evident from the data that was announced by the Central Bureau of Statistics (CBS).
Price trend during the month of May 2016
The consumer price index (CPI) of Curacao in May 2016 compared with April 2016 decreased by 0.1 percent, i.e. from 122.8 to 122.7.
The spending categories that showed the largest price changes were "living" in May (-1.1%) and "Transport and communication" (+ 1.2%).
"Home" is mainly influenced by consumer rate. The consumption of electricity and water fell by 6 percent, while the price development of "Transport and Communication" was mainly characterized by the fact that gasoline has become 12 percent more expensive.
Price development compared to a year ago and long-term inflation
The consumer price index in May 2016 (122.7) was 0.4 percent lower than in May 2015 (123.2). This figure shows that the month of May of this year was 0.4 percent cheaper than the month of May last year, as far as the average price of consumer goods and services goes.
The twelve-month average of prices in May 2016 were 0.5 percent lower than in May 2015, so a decline in the 12-month average consumer price index from 124.1 to 123.6. This figure (-0.5%), according to the CBS gives a good picture of long-term inflation.
Inflation is a reflection of the loss of monetary value or the purchasing power, as the consumer price for goods and services increases. The inflation rate is an indication of the average increase in the cost of living.
Deflation is the opposite of inflation: it gives an indication of the decline in the cost of living and the increase in purchasing power because the average consumer prices for products and services decreases.
According to the CBS the mild deflation in Curaçao has continued uninterrupted for seven months now.