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Inflation rate down to zero in June

The inflation rate was zero in June, meaning consumers paid the same as they did a year earlier for a basket of goods and services.

It was the second monthly Consumer Price Index report this year to show a zero inflation rate, after April, the month of shelter-in-place restrictions.

However, the Department of Statistics had difficulties in obtaining some of the price data it required, Wayne Furbert, Minister for the Cabinet Office, said.

Mr Furbert said: “The public should note that some price data used to produce the CPI index was not collected in June 2020 due to some unavailable goods and services, non-response from open stores and the temporary store closures caused by the Covid-19 pandemic.

“As a result of Covid-19, in-person field collection was suspended and, where possible, prices were collected via alternative methods such as online and e-mail.

“One of the nine sectors in June 2020 had missing prices which were imputed, transport and foreign travel.”

“Targeted mean imputation and the carry-forward method” were use to impute missing prices, Mr Furbert added.

Categories to record year-over-year falls in price in June included rent, down 0.9 per cent, transport and foreign travel, down 4.4 per cent, and fuel and power sector, down 2.4 per cent.

However, food prices climbed 3 per cent, while the cost of health and personal care rose 1.8 per cent. The annual increase in health and personal care services hit its lowest level since March 2018.

Between May and June 2020, the average cost of goods and services in the CPI declined 0.1 per cent. The index's basket of goods and services that cost $100 in April 2015 now costs $105.70.

Going up: food prices climbed 3 per cent year-over-year in June, as the overall inflation rate fell to zero (File photograph)

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Published September 30, 2020 at 3:49 pm (Updated September 30, 2020 at 3:49 pm)

Inflation rate down to zero in June

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