Rate of inflation hits all time highPOSTED: 03/28/12 11:25 AM
St. Maarten – Data released by the Department of Statistics on Tuesday shows that the 12-month average of consumer prices was 5.2 percent higher in February 2012 than in February 2011. This represents an increase in the inflation rate of 100 percent within the mentioned period. The rate of inflation has shown steady growth since April 2011, reaching an all time high of 5.2 percent in February 2012.
All nine expenditure categories recorded inflation in February 2012. Housing, which is the category with the largest influence (39 percent), inflated at a rate of 4.9 percent. Transportation and Communication, which is the second largest category (20 percent), inflated at a rate of 4.6 percent, and Food prices, which are the third largest category (10 percent), inflated at a rate of 11.1 percent. Even though food is the third largest category it has the second largest contributing influence to the overall inflation rate; this is directly resulting from the soaring inflation recorded in this category.
Inflation on St. Maarten over the prior 2-year period has been climbing. Inflation has shown a step like incline since April 2011 growing from 2.5 percent to 5.2 percent in February 2012. The current inflation represents the highest peak over the past 2-year period; as well as the highest inflation ever recorded over the last 20 years. The inflation recorded for February 2012 is comparable to that of October 2008 (5.1 percent). Prior to this period a comparable inflation rate was recorded in mid-1982.