CONSUMER PRICE INDEX

JUNE 2014


DEPARTMENT OF STATI STI CS

INFLATION FALLS
Consumers paid 1.8 per cent more in June 2014 than
they did a year ago for the basket of goods and
services included in the Consumer Price Index (CPI).
This level of inflation decreased 0.3 percentage
points from the 2.1 per cent measured in May 2014.

Between May 2014 and June 2014, the average cost
of goods and services in the Consumer Price Index
was unchanged. The all-items index remained at
124.2 index points in June. This means that the
basket of goods and services that cost $100.00 in
April 2006 now cost $124.20.




YEAR-TO-YEAR ANALYSIS
The Health & Personal Care sector remained the
largest contributor to the twelve-month rate of price
increase. The annual increase in June 2014 measured
5.9 per cent. Prescribed medicines increased 2.5 per
cent.

The Food and Rent sectors also impacted strongly on
the annual rate of inflation. Price shifts in these two
sectors were 2.9 per cent and 1.1 per cent,
respectively.








SUMMARY STATISTICS

Monthly

Quarterly
Period Index
Annual
per cent
Change
Period Index
Annual
per cent
Change
2013 2012
Jun
122.0 +1.9
Q1
118.2 +2.8
Jul
122.0 +1.8
Q2
119.6

+2.7
Aug
122.1 +1.3
Q3
120.3 +2.5
Sep
122.7 +1.8
Q4
120.5 +1.8
Oct
122.8 +1.6


Nov
122.1 +1.3
2013

Dec
122.4 +1.9
Q1
120.6 +2.0


Q2
121.7

+1.8
2014

Q3
122.3 +1.7
Jan
122.5 +1.8
Q4
122.4 +1.6
Feb
122.6 +1.7


Mar
123.3 +2.0
2014

Apr
123.8 +1.9
Q1
122.8 +1.8
May
124.2 +2.1
Q2
124.1 +2.0
Jun 124.2 +1.8
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.



Inflation
Rate
1.8%


BERMUDA CONSUMER PRI CE I NDEX


DEPARTMENT OF STATI STI CS

MONTH-MONTH ANALYSIS
Household Goods, Services & Communications
The Household Goods, Services & Communications
sector increased 0.5 per cent in June. The average
cost of elderly care, such as rest homes, increased by
9.0 per cent.
Food
Food prices increased 0.2 per cent in June following
a 0.2 per cent decrease in May. The average cost of
dining in restaurants rose 1.4 per cent while the cost
of grocery items declined 0.1 per cent. The leading
factors behind the decrease were local carrots (-7.9
per cent) and canned tuna fish (-2.9 per cent).
Fuel & Power
The Fuel & Power sector continued its upward trend,
increasing 0.7 per cent in June following a 0.8 per
cent increase in May. Residential consumers paid an
average of 2.0 per cent more for electricity due to an
increase in the fuel adjustment rate.
Health & Personal Care
The Health and Personal Care sector increased 0.1
per cent in June. The average cost of prescribed
medicines rose 2.2 per cent.
Rent
The Rent sector edged up a 0.1 per cent in June.
Average rent prices for properties under rent control
increased 0.1 per cent.



Education, Recreation & Reading
The Education, Recreation & Reading sector rose 0.1
per cent in June as the cost of boat fuel increased 1.3
per cent.
Tobacco & Liquor
The Tobacco & Liquor sector increased 0.1 per cent
in June as it did in May. The cost of beer rose 0.4 per
cent on average in June.
Clothing & Footwear
The Clothing & Footwear sector was unchanged in
June.
Transport & Vehicles
The Transport & Vehicle sector decreased 1.2 per
cent in June, following an increase of 2.6 per cent in
May. The leading contributor to the decrease was a
11.6 per cent drop in overseas hotel accommodations.
In contrast, the average price of airfares and gasoline
rose 6.9 per cent and 1.3 per cent, respectively.
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, 2013 is calculated as
Follows:

% 3 . 0
100
1 . 122
1 . 122 4 . 122
100
index 13 Nov
index 13 Nov - index 13 Dec

B) Year-to-Year Price Change
The price change between December
2012 and December, 2013 is calculated
as follows:

% 9 . 1
100
1 . 120
1 . 120 4 . 122
100
index 12 Dec
index 12 Dec - index 13 Dec

C) Particular Period Price Change
The price change between February
2010 and January, 2014 is calculated as
follows:

% 7 . 9
100
7 . 111
7 . 111 5 . 122
100
index 10 Feb
index 10 Feb - index 14 Jan

BERMUDA CONSUMER PRI CE I NDEX


DEPARTMENT OF STATI STI CS

APRIL 2006 = 100

All Items Food Rent
Clothing
&
Footwear
Tobacco
&
Liquor


Fuel
&
Power
Household
Goods,
Services &
Communica-
tions
Transport
&
Vehicles
Education,
Recreation
& Reading


Health &
Personal
Care

2004
WEIGHT
1000 146 325 37 20 30 140 139 71 92
ANNUAL AVERAGE ( per cent)

2009 +1.8 +5.4 +1.9 +3.0 +5.9 -6.3 +0.7 -4.3 +5.3 +6.7
2010 +2.4 +3.0 +1.3 +2.4 +1.9 -0.8 +1.6 +1.8 +2.5 +8.1
2011 +2.7 +2.3 +1.1 +5.7 +3.1 +11.3
+11.3
+2.0 +0.6 +2.6 +7.5
2012 +2.4 +3.5 +0.2 +4.3 +2.5 +9.3 +1.0 +1.6 +2.7 +6.6
2013 +1.8 +3.0 -0.3 +0.1 +4.4 -1.9 +0.5 +1.4 +2.5 +8.3

MONTHLY ( per cent)



2012
Jun Nil +0.2 +0.2 Nil +0.4 +5.3 -0.7 -1.8 +0.3 +0.1
Jul +0.1 +0.2 -0.1 -1.8 +0.5 +2.4 +0.2 -0.5 Nil -0.1
Aug +0.6 +0.6 +0.3 Nil +0.1 -1.8 +0.1 +4.1 -0.1 +0.1
Sep Nil +0.1 -0.2 Nil +0.2 Nil +0.3 -1.0 +2.1 +0.3
Oct +0.3 +0.4 Nil -2.0 +0.3 -1.9 +0.2 +1.3 +0.3 +1.5
Nov -0.4 -0.4 +0.1 Nil Nil -7.8 Nil Nil +0.1 +0.1
Dec -0.3 -1.0 Nil Nil +0.1 +2.9 Nil -2.0 Nil -0.1

2013
Jan +0.2 +2.3 -0.1 +1.1 +0.5 -1.4 +0.1 -1.2 +0.2 Nil
Feb +0.2 Nil +0.1 Nil -0.2 +1.4 Nil +1.3 Nil Nil
Mar +0.2 +0.4 -0.5 Nil Nil +2.8 Nil +1.4 Nil +0.1
Apr +0.5 +0.4 -0.3 +0.8 +1.7 Nil Nil -1.9 Nil +6.3
May +0.1 -0.4 Nil Nil +2.0 -2.7 +0.1 +1.2 Nil +0.7
Jun +0.3 +0.1 Nil Nil +0.4 +1.8 -0.1 +1.6 -0.1 +0.1
Jul Nil +0.3 +0.2 +0.2 +0.1 Nil +0.1 -1.8 -0.1 +0.1
Aug +0.1 +0.8 +0.1 Nil +0.1 +0.9 +0.4 -0.5 +0.1 Nil
Sep +0.4 +0.2 Nil Nil -0.1 +0.8 -0.1 +2.2 +1.6 Nil
Oct +0.1 -0.1 +0.1 +1.0 Nil -0.8 +0.1 +0.5 -0.1 +0.4
Nov -0.6 -0.4 Nil +0.2 +0.4 -2.7 Nil -3.2 -0.1 Nil
Dec +0.3 -0.8 +0.1 Nil +0.1 Nil Nil +2.6 +0.1 +0.1

2014
Jan +0.1 +1.5 +0.5 +0.7 +0.4 -2.9 Nil -1.7 -0.1 Nil
Feb +0.1 +0.3 Nil Nil -0.1 -2.1 Nil +1.2 +0.2 -0.1
Mar +0.5 +1.2 Nil Nil Nil +2.1 +0.1 +2.0 Nil Nil
Apr +0.4 -0.2 +0.1 -0.3 +0.4 +1.1 Nil -2.4 +0.2 +5.3
May +0.3 -0.2 Nil Nil +0.1 +0.8 Nil +2.6 +0.1 Nil
Jun Nil +0.2 +0.1 Nil +0.1 +0.7 +0.5 -1.2 +0.1 +0.1

Jun 14 124.2 133.2 111.5 122.5 136.8 153.3 112.2 110.8 132.0 174.5


'13 Jun
'14 Jun
+1.8 +2.9 +1.1 +1.9 +1.5 -2.2 +1.1 +0.1 +2.0 +5.9

BERMUDA CONSUMER PRI CE I NDEX


DEPARTMENT OF STATI STI CS

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 sub-
components 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
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
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
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.
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.


Published by the Government of Bermuda
July 2014

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

A COMPARISON OF RATES OF INFLATION (%)
Selected Countries & Bermuda

2010 2011 2012 2013 June 14

Bermuda 2.4 2.7 2.4 1.8 +1.8
United States
1
1.5 3.0 1.7 1.5 +2.1
Canada
2
1.8 2.9 1.5 0.9 +2.4
United Kingdom
3
4.6 5.2 3.2 3.0 +2.6

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