The Statistics Office has released new estimates of the Retail Price Index (RPI) and the annual inflation rate for the second quarter of 2024. The RPI was measured at 117.3, up from 115.3 in Q2 2023, resulting in an annual inflation rate of 1.8%. This rate remains unchanged from the previous quarter.
The index measures price changes across nine major categories of household spending using 203 representative items. Since a year ago, prices for 85 items increased, 39 items decreased, and 79 items remained unchanged. All categories saw a price increase except Communications, which experienced a significant drop due to changes in internet access tariffs introduced by telecommunications provider Sure in October last year.
Price fluctuations in both the UK and South Africa significantly impact prices on St Helena due to the majority of imported goods being purchased from these countries. In May 2024, consumer price inflation was measured at 2.0% in the UK and remained at 5.2% in South Africa compared to April figures. During the first half of 2024, the Pound averaged around 23.7 Rand—a five percent increase from the same period in 2023—counteracting some effects of price inflation in South Africa on St Helena's final shop-floor prices.
Household Energy, Housing, and Transport contributed most to upward pressure on the annual inflation rate. Connect Saint Helena Ltd revised its utilities tariff in January with increased charges for water and electricity; further increases introduced in July will be measured next quarter (Q3). Over twelve months, Housing costs rose due to higher prices for water, building materials, and maintenance services; Transport costs increased mainly because of rising tyre prices, delivery charges, petrol, and diesel.
The quarterly change in RPI was recorded at 0.3% when comparing Q2 to Q1 of this year. Food saw a one percent increase on average; Transport rose by an average of 0.8%, while Miscellaneous Goods and Services went up by an average of 0.6%. Household Goods and Services decreased by an average of one percent; Clothing fell significantly by twelve percent but had minimal impact on overall inflation due to its low weight (1.1%) in the shopping basket.
Price inflation reflects changes over time in average prices paid by consumers for goods and services as measured through RPI each quarter against a baseline set during Q1 of 2018 when it was scaled to a value of 100.
An accurate measure helps understand how price changes affect government budgets as well as businesses' financial planning processes.
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