The development of consumer prices on Curaçao for the month of April 2020
WILLEMSTAD - The figures from the Central Bureau of Statistics (CBS) published today show that the price level has risen by 0.2 percent compared to March 2020. The inflation rate has risen to 2.9 percent.
Due to the corona crisis, CBS has had some problems in compiling the Consumer Price Index (CPI) in April 2020. This is mainly because certain products and services were no longer available (such as a movie ticket or a haircut at the hairdresser). In addition, the purchasing behavior of consumers changes and it may be more difficult or sometimes impossible to observe the correct prices.
Depending on the situation, CBS has opted for a method in which an estimated notional price can be used. This method is in accordance with the international guidelines drawn up by the UN and IMF. Due to the chosen solutions, CBS can continue to publish the total CPI and the calculated price development between post and pre-corona time will correspond to reality in due course.
Price development month of April 2020 compared to the previous month of March 2020
Curaçao's consumer price index (CPI) increased by 0.2 percent in April, compared to March 2020, developing from 133.7 in March 2020 to 134.0 in April 2020.
The main price changes during the past month (April 2020) are; kerosene becoming cheaper (-27.3%), potatoes, vegetables and fruit (-0.7%) and gas cylinders becoming more expensive (3.7%), petrol (1.3%), smoking products (4.6%), gas oil (1.9%), household expenses (0.9%), dairy products (0.7%) and sugar and chocolate (0.7%).
Price development April 2020 compared to April 2019
The March 2020 CPI (134.0) is 2.7 percent higher than the April 2019 CPI (130.5). These figures indicate that the cost of living in March 2020 is 2.7 percent higher than in the same month of 2019. The categories that contributed most to this growth are beverages and smoking, food, and housing.
Inflation reflects the loss of monetary value, that is to say, of purchasing power, because consumer prices for products and services rise over a longer term (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 indexation 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 of CPI in the same month a year earlier. Measured over the twelve-month period through April 2020, compared to the same period a year earlier, consumer prices have risen by an average of 2.9 percent: the 12-month average CPI has moved from 129.6 in April 2019 to 133.3 in April 2020.