WILLEMSTAD - According to the figures released today by the Central Bureau of Statistics (CBS), the price level on Curaçao rose by 0.2 percent in May 2023 compared to April 2023, and the inflation rate increased to 7.0 percent in May 2023.
Price Development in May 2023 compared to the previous month, April 2023
The Consumer Price Index (CPI) of Curaçao increased by 0.2 percent in May 2023 compared to April 2023, rising from 116.4 in April 2023 to 116.7 in May 2023.
In May 2023, most spending categories became more expensive, with the exception of the housing category (-1.0%). The most significant price changes during May 2023 were in the cost of food (1.0%), home furnishings and household goods (0.7%), clothing and footwear (0.5%), beverages and tobacco (0.4%), healthcare (0.4%), and transportation and communication (0.7%), which includes an increase in gasoline prices (5.1%) and a decrease in diesel prices (-4.8%). Furthermore, the housing category became cheaper (-1.0%), including decreases in electricity (-4.7%), water (-2.3%), and kerosene (-10.9%).
Price Development in May 2023 compared to May 2022
The CPI of May 2023 (116.7) is 3.6 percent higher than the CPI of May 2022 (112.7). These figures indicate that the cost of living in May 2023 is 3.6 percent higher than in the same month of 2022. The spending categories that have contributed the most to this growth are food (16.0%), home furnishings and household goods (12.2%), clothing and footwear (11.7%), beverages and tobacco (9.1%), and recreation and development (8.4%).
Long-term price development
Inflation is a representation of the loss of monetary value, and hence, purchasing power, due to the increase in consumer prices for goods and services over a longer period (typically 12 months). The inflation rate is an indication of the average increase in the cost of living and is therefore recommended as an indexing tool for salaries, pensions, social benefits, minimum wage, and other incomes.
The inflation in a particular month is calculated by comparing the 12-month average of the CPI in that month with the 12-month average CPI in the same month of the previous year. Measured over the twelve-month period up to May 2023, compared to the same period a year earlier, consumer prices have increased by an average of 7.0 percent in May 2023: the 12-month average CPI has developed from 108.5 in May 2022 to 116.1 in May 2023.