CONSUMER PRICE INDEX

June 2013 INFLATION RISES Consumers paid 1.9 per cent more in June 2013 than they did a year ago for the basket of goods and services included in the Consumer Price Index (CPI). The rate of inflation increased 0.2 percentage points from the 1.7 per cent recorded in May 2013. Between May and June 2013, the average cost of goods and services in the Consumer Price Index rose 0.3 per cent. The all-items index increased from 121.7 to 122.0 index points in June. This means that the basket of goods and services that cost $100.00 in April 2006 now cost $122.00.
YEAR-TO-YEAR ANALYSIS

The Health & Personal Care sector had the strongest impact on the twelve-month increase in the Consumer Price Index. The total cost of the Health & Personal Care basket increased 9.1 per cent year-over-year. The Transport & Vehicles and Food sectors also contributed to the rise in the annual rate of inflation, as price shifts in these sectors were 4.1 per cent and 2.5 per cent, respectively.

Inflation Rate 1.9%

The compilation of the CPI involves the processing of several thousand price quotations. The Department of Statistics wishes to acknowledge the cooperation of the business community in supplying the required price data.
Period 2012 Jun Jul Aug Sep Oct Nov Dec 2013 Jan Feb Mar Apr May Jun Index

SUMMARY STATISTICS
Monthly Annual per cent Change +2.7 +2.5 +3.1 +1.9 +1.7 +1.9 +1.9 Period 2011 Q1 Q2 Q3 Q4 2012 Q1 Q2 Q3 Q4 2013 Q1 Q2 Quarterly Index Annual per cent Change +2.6 +2.6 +2.6 +3.0

119.7 119.8 120.5 120.5 120.9 120.5 120.1

115.0 116.5 117.4 118.3

118.2 119.6 120.3 120.5

120.3 120.6 120.9 121.5 121.7 122.0

+1.9 +2.1 +2.1 +1.7 +1.7 +1.9

+2.8 +2.7 +2.5 +1.8

120.6 121.7

2.0 1.8

DEPARTMENT OF STATISTICS

BERMUDA CONSUMER PRICE INDEX

MONTH-TO-MONTH ANALYSIS
Transport & Vehicles

Food

Price movement in the Transport & Vehicle sector increased 1.6 per cent in June following a 1.2 per cent increase in May. The increase was attributed to a seasonal rise in the average cost of airfares (19.4 per cent). In contrast, overseas hotel accommodations fell by 4.8 per cent.

Food prices in grocery stores were down 0.3 per cent in June. However, the price of food purchased from restaurants increased 2.1 per cent causing the Food sector to increase 0.1 per cent for the month.
Health

The Health and Personal Care sector increased 0.1 per cent in June following a 0.7 per cent increase in May. The average cost of prescribed medicines rose 2.6 per cent.
Rent

The Rent sector remained unchanged in June as it did in May. Average rental prices for rentcontrolled properties increased by 0.2 per cent, but were offset by an equal decrease (0.2 per cent) in the average rental costs for properties not subject to rent control.
Clothing & Footwear Fuel & Power

The Fuel & Power sector rose 1.8 per cent in June, after a 2.7 per cent decrease in May. The cost of electricity increased 1.9 per cent.
Tobacco & Liquor

The Clothing sector was static in June with no price movement.

Household Goods, Services & Communications

The Tobacco & Liquor sector increased for the third consecutive month, up 0.4 per cent May. The average price of beer and wine increased by 0.7 per cent and 0.6 per cent, respectively.

The Household Goods, Services & Communications Sector declined 0.1 per cent in June following three months of no change. The average price for household supplies, such as food wraps and cleaning materials fell 0.2 per cent.
Education, Recreation & Reading

The Education, Recreation & Reading sector decreased 0.1 per cent in June. The average cost pet food fell 0.6 per cent. COMPUTING PRICE INCREASES
The Department of Statistics receives numerous calls daily requesting the rate of inflation over specific periods of time. The following calculations are provided to guide users as to how to compute rates of price increases. The monthly index numbers can be obtained from our website www.statistics.gov.bm. a) Month-to-Month Price Change
The price change between November and December, 2012 is calculated as Follows: Dec 12 index - Nov 12 index = 100 Nov 12 index
= 120 . 1 120 .5 100 120 . 5

b) Year-to-Year Price Change The price change between December 2011 and December, 2012 is calculated as follows: Dec 12 index - Dec 11 index = 100 Dec 11 index
= 120 .1 117 .9 100 117 .9

c) Particular Period Price Change The price change between February 2010 and January, 2013 is calculated as follows: Jan 13 index - Feb 10 index = 100 Feb 10 index

120 .3 111 .7 100 111 .7

= 0 .3 %

= 1 .9 %

= 7 .7 %

DEPARTMENT OF STATISTICS

BERMUDA CONSUMER PRICE INDEX

APRIL 2006 = 100

Household Goods, Services & Communications

All Items 2004 WEIGHT

Food

Rent

Clothing & Footwear

Tobacco & Liquor

Fuel & Power

Transport & Vehicles

Education, Recreation & Reading

Health & Personal Care

1000

146

325

37

20

30

140

139

71

92

ANNUAL AVERAGE ( per cent) 2008 2009 2010 2011 2012 +4.8 +1.8 +2.4 +2.7 +2.4 +5.6 +5.4 +3.0 +2.3 +3.5 +2.4 +1.9 +1.3 +1.1 +0.2 +2.7 +3.0 +2.4 +5.7 +4.3 +9.3 +5.9 +1.9 +3.1 +2.5 +31.8 -6.3 -0.8 +11.3 +9.3 +2.6 +0.7 +1.6 +2.0 +1.0 +3.9 -4.3 +1.8 +0.6 +1.6 +5.1 +5.3 +2.5 +2.6 +2.7 +6.6 +6.7 +8.1 +7.5 +6.6

MONTHLY ( per cent)

2011 Jun Jul Aug Sep Oct Nov Dec 2012 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 Jan Feb Mar Apr May Jun Jun 13

+0.3 +0.2 Nil +1.2 +0.5 -0.6 -0.2

+0.5 -0.2 +2.1 +0.1 +0.4 +0.2 -1.4

+0.1 -0.1 Nil -0.4 +0.1 Nil -0.1

Nil -0.3 +0.1 Nil +4.6 Nil Nil

+0.2 +0.6 +0.2 +0.1 +0.2 +0.1 +0.1

+2.8 +1.8 +3.8 +3.7 +0.6 +0.1 Nil

+1.2 +0.1 +0.2 +0.4 +0.1 +0.1 -0.1

-0.4 +1.1 -4.2 +8.0 +1.5 -4.9 +0.5

-0.4 +0.4 +0.2 +2.0 -0.1 +0.1 +0.1

+0.1 +0.1 +0.1 +0.1 +0.1 Nil 0.2

+0.1 +0.1 +0.2 +0.9 +0.2 Nil +0.1 +0.6 Nil +0.3 -0.4 -0.3 +0.2 +0.2 +0.2 +0.5 +0.1 +0.3 122.0

+1.6 -0.2 +0.9 Nil +0.5 +0.2 +0.2 +0.6 +0.1 +0.4 -0.4 -1.0 +2.3 Nil +0.4 +0.4 -0.4 +0.1 129.4

Nil +0.1 +0.1 +0.1 -0.1 +0.2 -0.1 +0.3 -0.2 Nil +0.1 Nil -0.1 +0.1 -0.5 -0.3 Nil Nil 110.3

Nil Nil Nil +1.5 +0.2 Nil -1.8 Nil Nil -2.0 Nil Nil +1.1 Nil Nil +0.8 Nil Nil 120.2

-0.1 +0.4 +0.2 +0.7 -0.1 +0.4 +0.5 +0.1 +0.2 +0.3 Nil +0.1 +0.5 -0.2 Nil +1.7 +2.0 +0.4 134.8

Nil Nil Nil Nil Nil +5.3 +2.4 -1.8 Nil -1.9 -7.8 +2.9 -1.4 +1.4 +2.8 Nil -2.7 +1.8 156.8

+0.1 +0.1 +0.1 Nil Nil -0.7 +0.2 +0.1 +0.3 +0.2 Nil Nil +0.1 Nil Nil Nil +0.1 -0.1 111.0

-1.7 +1.0 +0.4 +1.3 +1.1 -1.8 -0.5 +4.1 -1.0 +1.3 Nil -2.0 -1.2 +1.3 +1.4 -1.9 +1.2 +1.6 110.7

Nil -0.1 -0.1 +0.2 +0.2 +0.3 Nil -0.1 +2.1 +0.3 +0.1 Nil +0.2 Nil Nil Nil Nil -0.1 129.4

Nil Nil +0.1 +5.6 Nil +0.1 -0.1 +0.1 +0.3 +1.5 +0.1 -0.1 Nil Nil +0.1 +6.3 +0.7 +0.1 164.8

Jun '13 Jun '12

+1.9

+2.5

-0.6

-2.0

+5.6

-4.7

+0.8

+4.1

+2.5

+9.1

DEPARTMENT OF STATISTICS

BERMUDA CONSUMER PRICE INDEX

WHAT IS THE CONSUMER PRICE INDEX? The Consumer Price Index (CPI) is a statistical tool used for measuring changes in the general level of prices of consumer goods and services purchased by private households. The index measures price movements of a given quality and quantity of goods and services. The mix of these consumer goods and services comprising the index, are figuratively thought of as a shopping basket. In constructing this shopping basket, the selected goods and services are organized first by commodity type. They are then divided into subcomponents and assigned to a major expenditure group. The Bermuda CPI is structured into nine expenditure groups or sectors: Food Rent Clothing & Footwear Tobacco & Liquor Fuel & Power Transport & Vehicles Household Goods, Services & Communications Education, Recreation & Reading Health & Personal Care CONCEPTS AND DEFINITIONS
Base Period

WEIGHTED AVERAGE A mathematical formula that takes into account the relative importance of an items price change compared to the overall change in the sector or CPI.
Inflation

Inflation is the process of rising prices, resulting in diminishing purchasing power of a given sum of money.
Cost of Living Index

Many individuals refer to the Consumer Price Index (CPI) as a cost-of-living index. The CPI is an index of pure price change only. A cost-of-living index reflects the changes in buying or consumption patterns that consumers would ordinarily make to adjust to any change in the price of a good or service.

A COMPARISON OF RATES OF INFLATION (%)

Selected Countries & Bermuda

2009 2010 2.4 1.5 1.8 4.6 2011 2.7 3.0 2.9 5.2

2012 Jun 13 2.4 1.7 1.5 3.2 +1.9 +1.8 +1.2 +3.3

The time period which is used as a reference point for measuring the price change of goods and services. The base period for the Bermuda CPI is April 2006.
Price Index Number

Bermuda 1 United States Canada2 3 United Kingdom

1.8 2.7 0.3 -0.5

A single figure that shows how a set of prices has changed over a specified period of time. An index number on its own means nothing. It must be compared with an index number from another period to have meaning. For example, a comparison of the index number 79.1 for January 1998 with 82.9 for January 2000, reveals that prices have increased by 4.8 percent.
Laspeyres Equation

Sources: 1. US Bureau of Labour Statistics 2. Statistics Canada 3. UK Office of National Statistics

Published by the Government of Bermuda July 2013 The Cabinet Office Department of Statistics Cedar Park Centre, 48 Cedar Avenue, Hamilton HM 11 P.O. Box HM 3015 Hamilton HM MX, Bermuda Tel: (441) 297-7761, Fax: (441) 295-8390 E-mail: statistics@gov.bm Website: www.statistics.gov.bm

The CPI is computed using this statistical equation. This formula calculates the total amount of money a household needs today to purchase the same basket of goods and services that it bought in the base period, April 2006.

DEPARTMENT OF STATISTICS