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The Consumer Price Index of Puerto Rico for April showed an increase of 1.4% compared to the same month of 2020, informed the local Economic Development Bank (EDB).
Luis Alemañy, president of the EDB, detailed in a press release that the highest year-on-year CPI growths by main group correspond to the categories of food and beverages with 1.4%; clothing, with 2.1% and transportation 3%.
The increase in the price of gasoline, motor fuel and others subgroup registered a rise of 9.8 % and the increase in the public transport subgroup was 11.5%.
“We are presenting this report as part of the efforts of the BDE’s Center for Economic Studies to keep small and medium traders, businessmen and investors informed and thus support them in terms of decision making,” Alemañy said.
He also noted that disruptions in the food supply chain during the pandemic have impacted the price of fresh meats, thus reflecting in the meat, poultry, fish and egg sub-sector, which belongs to the main category of food and beverages.
According to the report, the Consumer Price Index of Puerto Rico ended 2020 with a 0.5% drop, the first time annual inflation has been in negative territory since 2016. By the close of 2017, it increased by 1.9%; in 2018 it stood at 1.1%; and for 2019 it closed at 0.1%.
Consumer Price Index of Puerto Rico
The Consumer Price Index is an indicator that serves as a tool to measure changes in the prices paid by consumers for the purchase of goods and services.
The EDB statement indicated that with more money circulating in the economy and interest rates at such low levels, coupled with financial decisions, both commercial and individual can positively impact the island’s economy.
“However, it remains to be seen whether the remaining jobs to be recovered and the resulting income constraints on individuals, which cause more money to be spent on essential goods and services such as food, fuel, and housing, will lead to a longer-term increase in prices within those categories,” Alemañy said.