Published On: Mon, Jul 30th, 2018

Consumer prices on Curaçao: June 2018 – Average price level in June was 0.5 percent higher compared to May 2018

WillemstadWILLEMSTAD - Price development month June 2018 compared to month May 2018

The consumer price index (CPI) of Curaçao increased by 0.5 percent in the month of June 2018, from 127.8 in May 2018 to 128.5 in June 2018. The price development on Curaçao during the month of June was mainly characterized by the increase of housing costs (+ 1.1%) and driving costs (+ 1.9%).

The increase in living expenses is mainly due to the cost of cooking gas (+ 8%), tap water (+ 5%) and electricity (+ 4%), while the increase in car costs is mainly the result of the price increase of diesel and gasoline with 7.5 and 4 percent respectively.

Price development month June 2018 compared to month June 2017

The CPI of June 2018 (128.5) is 2.7 percent higher than the CPI of June 2017, when a CPI of 125.1 was measured. This figure (2.7%) is an indication that the consumer price level during the month of June 2018 is 2.7 percent higher than during the month of June 2017.

Long-term price development: inflation in June 2018

Inflation is a reflection of the loss of monetary value compared to the purchasing power, because the consumer prices for products and services increase over a longer period (usually 12 months). The inflation rate is therefore an indication of the average increase in the cost of living and is therefore recommended as an indexing tool for salaries, pensions, social benefits, minimum wages and other incomes.

Inflation in a given month is calculated by comparing the 12-month average of the CPI in that month with the 12-month average CPI in the same month a year earlier.

Measured over the twelve months up to and including June 2018, compared with the same period a year earlier, consumer prices have increased on average by 1.7 percent: the 12-month average CPI has evolved from 124.6 in June 2017 to 126.7 in June 2018. Inflation on Curaçao in June 2018 is 1.7 percent.

Long-term price development: inflation last 27 months

Over the past two years (27 months), consumer price development has first resulted in 8 months of slight deflation, followed by two months of zero inflation and 12 months of gradually increasing inflation, from 0.2% in February 2017 to 1.7% in January 2018. After a slight fall in February 2018 - from 1.7 to 1.6 percent - inflation will stabilize at 1.6 percent up to and including May 2018. With the slight increase to 1.7 percent in June 2018, inflation is back to the level of January 2018.

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