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DEPARTMENT OF STATISTICS (STAT)

Address: Juancho Yrausquin Boulevard 6 (units 7/8)

Email: statinfo@sintmaartengov.org

Press release

Philipsburg, February 19th 2016

Consumer prices Sint Maarten December 2015

Prices have decreased slightly compared to October 2015

The consumer price index for Sint Maarten has decreased in the month of

December 2015 by 0.3 percent compared to that of October 2015.

When comparing average consumer prices over a twelve month period (Dec.

2014 to Dec. 2015), an increase of 0.3 percent was recorded compared to

the same period one year earlier. Inflation has shown an overall decline in

2015 (0.3%) compared to the rate of inflation recorded in 2014 (1.9%). This

is also notable in the major expenditure categories; ‘Housing’ and ‘Transport

& Communication’, which both recorded significant declines in the rate of

inflation approximately 187% and 136% respectively compared to that of

2014; whilst the major expenditure category ‘Food’ recorded inflation of

approximately 10 percent higher than that of 2014. Most notably is that four

of the nine expenditure categories recorded deflation in December 2015,

which largely contributed to the significantly lower annual inflation rate for

2015.

This is evident from the data that has been released by the Department of

Statistics (STAT) today.

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Price changes between October & December 2015

The consumer price index for Sint Maarten has decreased in the month of December

2015 by 0.3 percent compared to that of October 2015. The price index recorded in

December 2015 is 126.4.

Expenditure Category

WEIGHT INDEX

OCTOBER

2015

INDEX

DECEMBER

2015

%

CHANGE

Food 10% 194.6 196.0 0.7

Beverages and tobacco 1% 145.6 145.3 -0.2

Clothing & footwear 7% 114.5 111.4 -2.7

Housing 39% 123.5 123.2 -0.2

Household furnishing & appliances 6% 145.8 145.6 -0.1

Medical care 3% 115.4 115.4 0.0

Transport & communication 20% 105.7 104.9 -0.8

Recreation & education 6% 106.3 106.5 0.2

Misc. 8% 120.6 120.4 -0.2

TOTAL 100% 126.8 126.4 -0.3

Expenditure Categories – declining consumer prices

In December 2015, six of the nine expenditure categories have become marginally less

expensive, whilst two recorded increases and one remained stable. Amongst the more

expensive were the categories; ‘Food’ (+0.7%) and ‘Recreation & Education’ (+0.2%).

Whereas the expenditure categories ‘Beverages and Tobacco’, ‘Clothing and Footwear’,

‘Housing’, ‘Household Furnishing & Appliances’, ‘Transport & Communication’ and

‘Miscellaneous’ recorded the following decreases; 0.2%, 2.7%, 0.2%, 0.1%, 0.8%, and

0.2% respectively.

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Food

1

Within the expenditure category Food, it can be noted that only two of the nine food

groups became less expensive whilst seven became more expensive. The following

developments were recorded in each food group; Grain (+0.5%), Meat and Fish (+0.9%),

Fats & Oils (-0.9%), Dairy Products (+1.4%), Potatoes, Vegetables & Fruit (+1.2%), Sugar

& Chocolate (+2.6%), Pre-cooked dishes (-2.2%), Eating-out (+0.4%) and other food

resources (+0.3%).

More specifically the following products largely influenced the total price change within

the food groups: The food group ‘Grain’ was largely influenced by the products white

bread (-1.8%) and Pasta (+3.3%). The food group ‘Meat & Fish’, was largely influenced

by oxtail (+7.8%), spareribs (+3.1%), pork meat with & without bone (+2.2%), pig tail (-

12.2%), goat meat (-9.8%), Chicken (-1.9%) and other poultry (-7.6%). The food group

‘Dairy Products’ was largely influenced by; powdered milk (-1.3%) and eggs (-6.9%).

The food group ‘Potatoes, Vegetables & Fruit’ was largely influenced by; leafy greens

(+20.5%), cabbage (26.3%), bell peppers / paprika (-5.5%), misc. fruit vegetables

(+6.3%), frozen vegetables (-7.8%), other fresh vegetables (+30.4%), grapes and prunes

(-3.4%), citrus fruit (+6.3%), other fresh fruit (+7.7%) and raisins (+3.7%).

1 Please note that the pie chart above depicts the share (weight) each food group carries toward the entire Food expenditure category, whilst the percentages indicate the price change within that food group.

Grain+0.5%

Meat and Fish+0.9%

Fats & Oils-0.9%

Dairy Products +1.4%

Potatoes, Vegetables & Fruits

+1.2%

Sugar & Chocolate+2.6%

Pre-cooked dishes-2.2%

Eating-out+0.4%

Other food resources

+0.3%

FOOD EXPENDITURE CATEGORY10% of CPI

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Housing

2

Within the expenditure category Housing, it is noted that three of the five product groups

became marginally less expensive whilst one remained stable. The product groups;

‘Energy expenses’, ‘Garden maintenance’ and ‘Maintenance of dwelling’ decreased by

2.8%, 0.6%, 0.6% respectively. A decrease in the consumer price of electricity by -2.3%

largely influenced the total price change within the product group ‘Energy expenses’. The

product group ‘Maintenance of dwelling’ was largely influenced by the change recorded

in the price of Paint (-0.7%) and roof materials (+13.9%)

2 Please note that the pie chart above depicts the share (weight) each food group carries toward the entire Housing expenditure category, whilst the percentages indicate the price change within that product group.

Dwelling costs+0.4%

Energy expenses

-2.8%

Maintenance of dwelling

-0.6%

Garden maintenance

-0.6%

Water+0.0%

HOUSING EXPENDITURE CATEGORY39% of CPI

5

Transport & Communication

3

Within the expenditure category Transport & Communication, one of the four product

groups became less expensive, whilst the others remained stable. Noteworthy is that the

product group ‘Vehicle Expenses’ was largely influenced by the following products; tires

(-2.1%), Gasoline (-18.4%) and Diesel (-15.1%).

3 Please note that the pie chart above depicts the share (weight) each food group carries toward the entire Transport & Communication expenditure category, whilst the percentages indicate the price change within that product group.

Vehicle Purchase 0.0%

Vehicle Expenses -2.9%Transport services

0.0%

Communication0.0%

TRANSPORTATION AND COMMUNICATION EXPENDITURE CATEGORY

20% of CPI

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Sint Maarten Consumer Price Index a Broader Perspective

Consumer prices in 2015 are generally at a higher level than 3 years ago (see bar chart

below) this is depicted in the upward sloping trend line. An increasing trend is shown,

with consumer prices in December 2015 being 4.6 points above that of December 2012.

However the rate of increase has slowed to the point of declining prices; evident in the

point to point comparison between the period December 2015 and December 2012 with

changes of 3.3 points and 1.5 points and now -0.2 points.

Noticeable are the fluctuations recorded during the period October 2014 and August 2015

which was followed by a more gradually decreasing index figure towards the latter part

of 2015.

114.0

119.0

124.0

129.0

DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC

2013 2014 2015

CONSUMER PRICE INDEX SINT MAARTEN (DEC 2012 - DEC 2015)

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Long-term inflation Inflation Sint Maarten: 20-year Overview

The annual inflation recorded on Sint Maarten over the past 20 years has been extremely

volatile; ranging from less than 1 percent in some years to over 4.5 percent in others. Still

noticeable is the continuous and consistently declining inflation recorded over the last 5-

years. Notable is that the rate of inflation recorded in 2015 is the lowest over the last 20

year period.

3-year Overview

The trend line depicted on the bar chart below indicates that inflation on Sint Maarten

over the prior 3-year period has been steadily descending. The rate of inflation contracted

from 4.0 percent in December 2012 and 2.5 percent in December 2013, to 1.9 percent in

December 2014 and now a mere 0.3 percent in December 2015. The recorded level of

inflation started its descent since mid-2012 and has continued to fall steadily throughout

2015.

3.0

2.4

3.2

2.1 2.0

0.5

1.0

0.5

1.7

2.1

3.1

2.3 2.3

4.6

0.7

3.2

4.6

4.0

2.5

1.9

0.3

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

Infl

atio

n(%

ch

ange

of

the

year

-av

erag

e C

PI)

Inflation Sint Maarten in the past 20 years

4.0 %

2.5 %

1.9 %

0.3 %

0.0

2.0

4.0

DEC

FEB

AP

R

JUN

AU

G

OC

T

DEC

FEB

AP

R

JUN

AU

G

OC

T

DEC

FEB

AP

R

JUN

AU

G

OC

T

DEC

2013 2014 2015

Infl

atio

n(%

ch

ange

of

the

12

-mo

nth

av

erag

e

INFLATION SINT MAARTEN (DEC 2012 - DEC 2015)

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Inflation Sint Maarten December 2015

The 12-month average of consumer prices was 0.3 percent higher in December 2015

than a year earlier. This represents a decrease in the inflation rate of 84 percent within

this period mentioned.

Inflation per Expenditure Category

Only three expenditure categories recorded inflation in December 2015. ‘Food’ prices

inflated at a rate of 7.0 percent whilst ‘Housing’ and ‘Transportation & Communication’

recorded deflation at a rate of 1.7 percent and 2.3 percent respectively.

The annual inflation recorded amongst the major expenditure categories ‘Housing’ (39%),

‘Transport & Communication’ (20%) and ‘Food’ (10%) over the past 7-year period is

depicted in the bar chart below. Noteworthy is that food inflation recorded much instability

as opposed to the other major expenditure categories. Yet equally notable is the rate of

inflation recorded for the expenditure category ‘Food’, has shown more stability over the

last three years compared the 4-year period prior. Striking is that both the expenditure

categories ‘Housing’ and ‘Transport & Communication’ which accounts for 59 percent of

household expenditure has recorded deflation in 2015.

Food Beverages andtobacco

Clothing &footwear

Housing Householdfurnishing &appliances

Medical care Transport &Communication

Recreation &Education

Misc.

Inflation per Sector on Sint Maarten

12 Month Ave. DEC 2014 12 Month Ave. DEC 2015

7.0 %

0.0 %

-0.2 %

-1.7 %

3.0 %

3.9 % -2.3 % -0.7 %1.1 %

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2009 2010 2011 2012 2013 2014 2015

Food 10% 9.3% 3.0% 9.1% 11.4% 6.3% 6.3% 7.0%

Housing 39% -1.9% 5.8% 4.5% 2.4% 0.8% 1.9% -1.7%

Transport &Communication 20%

-1.2% 1.3% 4.7% 1.8% 0.9% -1.0% -2.3%

-8.0%

-3.0%

2.0%

7.0%

12.0%In

flati

on

(% c

han

ge o

f th

e y

ear-

ave

rag

e C

PI)

Annual Inflation on Sint Maarten for the Major Expenditure Categories