Oil prices drive CPI up
Consumers paid 2.8 percent more for a basket of goods and services in September than they did a year ago due largely to surging prices at the pumps. The rate of inflation of 2.8 percent in September declined slightly from 2.9 percent in August with the average cost of goods and services in the consumer price basket advancing 0.8 percent.
The all-items index rose from 132.2 index points in August 2005 to 133.2 index points in September 2005. In other words, a basked of goods and services which cost $100 in January 1995 now costs $133.20.
With gasoline prices surging, the Transport and Vehicles sector was the largest contributor to the twelve-month increase in the Consumer Price Index although prices for food, education, recreation and reading also contributed to the rise.
The Transport and Vehicles sector advanced 1.3 percent during the month directly due to a higher costs at the pumps. Premium gas prices climbed 8.6 percent in September or 17.3 percent over the past year while mixed gas prices rose 8.3 percent in September or 20.8 percent through the year.
?The upward pressure on local gasoline prices reflected strong international crude oil demand and uncertainty over future crude oil supplies in the aftermath of Hurricane Katrina,? the Department of Statistics said.
Substantial increases in tuition fees 6.7 percent higher for local tuition and 6.2 percent higher for overseas tuition saw the Education, Recreation and Reading sector post the strongest month-to-month movement of 3.6 percent.
Other contributors to the increase in the sector included a 6.6 percent increase in the average cost of recreation lessons, a 5.7 percent increase in boat repair and maintenance fees and an 8.1 percent increase in magazine prices.
A four percent increase in the average cost of child care services sent the Household Goods, Services and Supplies sector up by 0.6 percent in September.
The cost of bed linens and bath towels also saw noticeable increases during the month, the Department of Statistics said.
The Food sector also advanced 0.6 percent during September with bread, hamburger, rolls, canned fish and American cheese recording the most noticeable price movements.
The Rent sector edged up a nominal 0.2 percent with a 0.3 percent increase in the average cost for controlled properties and a 1.7 percent increase in the prices of household repair and maintenance. Noncontrolled rental properties did not advance in September.
Fuel and Power increased 0.7 percent during September with consumers experiencing higher electricity costs for the month as the Fuel Adjustment Clause (FAC) rose to a high of 6 cents per kilowatt hour.
The cost of propane gas climbed from $114 pre cylinder to $119 per cylinder within the month.