The Central Bureau of Statistics presents the most important findings for the Consumer Price Index (CPI) for the month of August 2022.
Consumer Price Index for the month of August 2022
The CPI for August 2022 is 106.43, an increase of 1.9% compared to the index of July 2022 (104.46) and accumulating an increase of 5.8% up to and including August of this year.
The percentage change of the CPI over the last twelve (12) months (August 2021 to August 2022) is 7.7, an increase of 6.3 percentage points (ppts) compared to the percentage change for the same period of last year (1.4%).
The period average (last 24 months) percentage change of the CPI for the periods August 2020 to August 2021 and August 2021 to August 2022 is 4.3%, an increase of 5.4 ppts compared to the period average percentage change over the periods August 2019 to August 2020 and August 2020 to August 2021 (-1.1%).
During this month, seven (7) of the twelve (12) sectors registered increases in prices. The increases that had the greatest influence on the CPI were registered for the “Housing” (9.7%) and “Household operation” (4.5%) sectors, which contributed with an effect of 2.32 and 0.40 ppts, respectively. The
increases in the remaining sectors had an effect of 0.30 ppts on the CPI of August 2022. Aforementioned increases were partially offset mainly by a decrease in the index for the “Transport” (-6.0%) sector, causing an effect of -0.94 ppts. The decreases in the remaining sectors had an effect of -0.19 ppts on the CPI of August 2022.
The increase in the “Housing” sector was mainly due to increases in the categories “Electricity, gas and other fuels” (21.8%) and “Water supply and miscellaneous services relating to the dwelling” (17.3%), which contributed to an effect of respectively, 1.59 and 0.79 ppts. The increase in the “Household operation” sector was mainly due to increases in the categories “Furniture, furnishings, carpets and other floor coverings” (23.0%) and “Household appliances” (6.6%), which contributed to an effect of 0.21 and 0.16 ppts, respectively.
The decrease in the “Transport” sector was mainly due to a decrease in the category “Operation of personal transport equipment” (-8.9%), which contributed to an effect of -0.90 ppts.
The consumption basket of the CPI consists of 408 goods and services. Compared to July 2022, 56.9% of these products had an increase in price, causing an effect of 3.47 ppts, while 26.0% showed a decrease, contributing to an effect of -1.58 ppts and the remaining 17.2% had no change in price. The prices of goods increased by 3.2% and caused an influence of 1.86 ppts. The prices of services increased by 0.1% had an influence of 0.03 ppts on the CPI of August 2022.
The CPIC (core inflation) – CPI excluding the effect of energy and food – was 2.5% in August 2022. The energy index – which consists of the products: electricity, water, gasoline and diesel – was 10.8%. The food index showed an increase of 7.1%.
The subsistence level for a household consisting of two (2) adults and two (2) children (aged 0-14 years) in August 2022 is Afl. 5,278, an increase of Afl. 461 compared to August 2021 (Afl. 4,817). The subsistence level for a single adult household is Afl. 2,513, an increase of Afl. 219 compared to August 2021 (Afl. 2,294).
Change in prices of crude oil, utilities, gasoline and diesel in August 2022
The prices of utilities (electricity and water), gasoline and diesel are for the greater part determined by international crude oil prices. In August 2022 the average price per barrel of crude oil (US$ 93.74) had a decrease of US$ 9.47 (-9.2%) compared to July 2022 (US$ 103.21).
The cost-price of electricity and water in Aruba is mainly based on the price of Heavy fuel oil (HFO). To minimize the risks of spikes in the price of HFO and stabilize the tariffs of electricty and water for extended periods of time, a hedging strategy was developed by the Water- en Energiebedrijf Aruba N.V. (WEB). Hedging was used until 2021. It was announced in July 2022, that new tariffs for electricty and water would be introduced, starting August 2022. Subsequently, the average electricity price per household increased by 22.7% from Afl. 240.09 to Afl. 294.56 and had an effect of 1.59 ppts, while the average price of water per household increased by 22.4% from Afl. 137.05 to Afl. 167.75 and had an effect of 0.79 ppts on the CPI of August.
In August 2022 the price of gasoline registered a decrease of Afl. 42.50 cents (-12.7%) and had an effect of -0.84 ppts on the CPI. The price of diesel registered a decrease of Afl. 34.20 cents (-10.9%) and had an effect of -0.05 ppts on the CPI of August 2022.
In August 2022, utilities, gasoline and diesel as a group showed an increase in price of 8.4% compared to July 2022, and had an influence of 1.49 ppts on the CPI, while the remaining 404 goods and services, as a group, show an increase of 0.5% and had an effect of 0.40 ppts on the CPI.
Change in prices of Food & catering services in August 2022
The “Food & catering services” index showed an increase of 1.4% in August 2022, after an increase of 0.7% in July 2022. The index for “Food at home” showed an increase of 1.6% in August, as ten (10) of the eleven (11) “Food at home” indices increased in August 2022. The “Vegetables” index registered the largest increase (5.8%) in August 2022. Furthermore, other significant increases were posted in the indicesfor “Fish and other seafood” (2.2%), “Meat” (1.9%), “Fruit” (1.8%), “Milk, cheese and eggs” (1.4%) and “Sugar, jam, honey and other confectionery” (1.4%).
The only decrease was registered in the index of “Potatoes and other tubers” (-4.6%).
Over the last twelve (12) months, the “Food & catering services” has increased by 10.3%. The “Food at home” index showed an increase of 12.1%, where all of the “Food at home” indices increased over the last year. The “Oils and fats” index increased by 16.8%, the largest increase among the “Food at home” food groups. Furthermore, other significant increases were posted in the indices for “Fruit” (16.4%), “Meat” (16.2%), “Milk, cheese and eggs” (12.7%), “Fish and other seafood” (12.4%) and “Vegetables” (11.7%).