BASSETERRE, ST. KITTS, OCTOBER 21ST 2005 - St. Kitts and Nevis was one of the islands in the sub-region with low inflation in 2004.
According to the Eastern Caribbean Central Bank (ECCB) Annual Economic and Financial Review, inflation among the eight countries that make up the Eastern Caribbean Currency Union, ranged from a low of 0.9 percent in Dominica to a high of 5.1 percent in Anguilla.
The ECCB also reported that St. Kitts and Nevis recorded the highest public sector wage increase in the 8 member countries of the ECCB.
The Central Bank said the rate of inflation in Anguilla, as measured by the change in the consumer price index was 5.1 percent during 2004 compared to 6.9 percent during 2003.
The food index rose 4.6 percent. Reflective of the increases in oil prices on the international market, the fuel and light sub-index rose 14.4 percent, almost twice the growth recorded during 2003.
In Antigua and Barbuda, the rate of inflation rose 2.1 percent in 2004, attributed to a 6.7 percent increase in the food sub-index. Fuel and light rose 1.4 percent; medical care and expenses, 3.5 percent and education, 1.2 percent.
In Dominica, the rate of inflation rose 0.9 percent compared to 2.8 percent in 2003. The food sub index rose 1.4 percent and housing, 3.3 percent.
Grenada registered a rate of inflation of 2.5 percent in 2004 with increases in food, up 2.8 percent; transportation and communication, up 5.1 percent; fuel and light, up 6.9 percent and decreases in household furnishing and supplies and medical care expenses.
Consumer prices in Montserrat rose 3.6 percent in 2004 with increases in the food sub- index, up 4.1 percent; clothing and footwear, up 5.2 percent and a 3.7 percent increase in gas, electricity and water as a result of increases in water rates and the fuel surcharge on electricity.
The ECCB reported that in St. Kitts and Nevis inflation increased a mere 1.7 percent in 2004 with increases in all sub-indices with the exception of household furnishings, which fell 0.7 percent. Of the major sub-indices, a 2.2 percent was recorded for food; 1.8 percent for transport and communication; housing rose 6 percent, reflecting higher prices for building materials.
St. Lucia registered a 3.5 percent in the consumer price index in 2004 compared to 0.5 percent in 2003. Food prices rose 4.2 percent; fuel and light, went up 7.4 percent due to higher international oil prices and clothing and footwear also rose, 5 percent.
The ECCB also reported that the rate of inflation in St. Vincent and the Grenadines rose 1.7 percent in 2004, down from the 2.2 percent in 2003. The food sub-index rose 2 percent; the fuel and light sub-index grew by 7.5 percent influenced by increases in the fuel surcharge for electricity services and in the retail price of gasoline.
The cost of household furnishings went up, 5.8 percent; alcoholic beverages and tobacco, up 3.9 percent and transport and communications, up 3.9 percent.
The Eastern Caribbean Bank said that the acceleration on economic activity in 2004 was achieved in a climate of relatively low inflation and that the increase in prices in all member countries in 2004 was driven in part by higher international oil prices, new tax measures and the appreciation of major currencies including the euro and pound sterling against the EC dollar.
It also reported that some OECS countries awarded salary and wage increases to civil servant in 2004. Grenada awarded a 4 percent increase, St. Lucia, 3 percent; St. Vincent and the Grenadines, four percent and St. Kitts and Nevis, 10 percent.
The ECCB said the minimum rates for workers in some sections of the private sector in St. Kitts and Nevis were also increased in 2004 and employees at the Antigua Port Authority received a 3 percent wage increase and a 1 percent bonus in 2004.
The were no salary increases for civil servants in Anguilla, Antigua and Barbuda, Dominica and Montserrat.
