Consumer Price Index Increased in the Fourth Quarter of 2024

SINT MAARTEN (GREAT BAY) – The Consumer Price Index (CPI) increased in the fourth quarter of 2024 to 114.79, which represented an increase of 0.64% when compared to the previous quarter. Additionally, when comparing consumer prices in the fourth quarter of 2024 to the fourth quarter of 2023 the results show a notable increase of 2.22%.

The total average CPI for 2024 is 113.91, which is up 3.97 from the previous year (CPI Avg. 2023 – 109.94).

When comparing Q4 2024 with Q3 2024 the CPI reveals that three out of the four major expenditure categories experienced price increases during this quarter. The following four categories carry the largest percentage weight (influence) when calculating the total CPI.

                                                                                                                                                                CPI (% chg.)                                    Weights

• Housing, water, electricity, gas, and other fuels                                                                      (-0.54%)                                           (36.1%)
• Transport                                                                                                                                     (+4.82%)                                          (14.6%)
• Miscellaneous goods and services                                                                                           (+1.72%)                                          (13.4%)
• Food and non-alcoholic beverages                                                                                           (+0.86%)                                          (7.2%)

Analysis of the 4 major categories revealed:

• In the fourth quarter of 2024, the category of Housing, Water, Electricity, Gas, and Other Fuels, had a drop of 0.54% compared to Q3 of 2024, which was driven by the subcategory “Maintenance and repair of the dwelling” which experienced a decline of 2.43%, primarily driven by the subcomponent “Materials for the maintenance and repair of the dwelling” (-3.31%). It’s refreshing to see a decrease in the subcategory “Electricity, gas and other fuels” of 2.37%. This decrease was primarily driven by the subcomponent “Electricity” (-2.68%).

• The category of Transport experienced a price increase of 4.82%, primarily influenced by the subcategory “Transport Services”which rose by 17.37%, which was largely driven by the subcomponent “Passenger transport by road” showing an increase of 25.81% and “Passenger transport by air” which increase by 5.42%. In addition to this category, the subcategory “Purchase of vehicles” increase by 0.48% largely driven by the subcomponent “Bicycles” (+3.39%) and “Motorcars” (+0.47%).

• Similarly, the category of Miscellaneous goods and services also saw an increase, with prices rising by 1.72%. This increase was primarily attributed to subcategory of “Personal care”(+4.12%), driven by subcomponent “Other appliances, articles and products for personal care” (+5.47%). This category’s increase was slightly off set by the subcategory “Personal effects n.e.c.” supported by the subcomponents “Other personal effects” (-1.72%).

• It should be noted that the Food and non-alcoholic beverages category recorded a 0.86% increase this quarter. This rise was primarily driven by the subcategory “Non-alcoholic beverages” (+2.11%) which is driven by the subcomponent “Mineral waters, soft drinks, fruit and vegetable juices” (+2.29%). Additionally, we see an increase in the subcategory “Food”(+0.64) which is driven by the subcomponents “Milk, cheese and eggs” (+4.86%) & “Oils and fats” (+3.06%).

Fourth quarter inflation comparison - 2023 Q4 with 2024 Q4 saw the highest increase repeat in the major category “Transport”.

The prices of the fourth quarter of 2024 saw an increase when compared to those in the fourth quarter of 2023, with the inflation rate recorded at 2.22%. This stiff percentage increase is since 3 of the 4 major categories all recorded 5+% increases. These major categories are Housing, water, electricity, gas, and other fuels, Transport, Miscellaneous goods and services & Food and non-alcoholic beverages.

The prices of three of the four expenditure categories that had the largest influence on the total CPI increased when compared to the same period in 2023.  

• Housing, water, electricity, gas, and other fuels fell by 0.37%, driven by a decrease in “Maintenance and repair of the dwelling” (-2.86%) and “Actual rentals for housing”
  (-1.50%). While there was an increase in “Electricity, gas, other fuels” (+2.09%).

• As mentioned previously, Transport recorded the biggest increase of the four major categories, rising by 5.49%; this was due to the increase in “Transport services” (+20.84%) and “Purchase of vehicles” (+0.97%). We did record a decrease in “Operation of personal transport equipment including fuel” (-4.01%).

• Miscellaneous goods and services increased by 5.43%. This was driven by increases in “Social protection” (+10.78%), “Other services n.e.c.” (+8.28), Personal effects n.e.c.” (+5.57%), “Personal care” (+8.10%) and “Financial services n.e.c.” (+4.05%). However, there remained a decrease in “Insurance” (-1.25%).

• In addition, prices of Food and non-alcoholic beverages increased by 4.32%, influenced by “Non-alcoholic beverages” (+6.19%) and “Food” (+4.00%).