Rate of inflation shows slight contractionPOSTED: 07/10/12 12:12 PM
St. Maarten – The rate of inflation has shown has shown a slight contraction in June 2012. When the average consumer prices for the twelve month period June 2011 to June 2012 are compared one notices an increase of 5.2 percent. This represents an increase of 92.6 percent in the inflation rate.
The June figure is lower than the 5.5 percent rate of inflation when one compares the figures in the twelve month period April 2011 to April 2012. That 5.5 percent represents an all time high.
Inflation per Expenditure Category
All nine expenditure categories recorded inflation in June 2012. Housing, which is the category with the largest influence (39%), inflated at a rate of 3.8 percent. Transportation and Communication, which is the second largest category (20 percent), inflated at a rate of 3.3 percent, and Food prices, which are the third largest category (10 percent), inflated at a rate of 13.7 percent. 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 5.5 percent in April 2012. However June 2012 (5.2 percent) has seen a slight contraction in the rate of inflation, comparable to that of February 2012 (5.2 percent).