The Central Bureau of Statistics presents the most important findings for the Consumer Price Index (CPI) for the month of September 2022.
Consumer Price Index for the month of September 2022
The CPI for September 2022 is 106.20, a decrease of 0.2% compared to the index of August 2022
(106.43) and accumulating an increase of 5.6% up to and including September of this year.
The percentage change of the CPI over the last twelve (12) months (September 2021 to September
2022) is 7.0, an increase of 4.8 percentage points (ppts) compared to the percentage change for the same period of last year (2.2%).
The period average (last 24 months) percentage change of the CPI for the periods September 2020 to September 2021 and September 2021 to September 2022 is 4.7%, an increase of 5.4 ppts compared to the period average percentage change over the periods September 2019 to September 2020 and September 2020 to September 2021 (-0.7%).
During this month, three (3) of the twelve (12) sectors registered decreases in prices. The decreases that had the greatest influence on the CPI were registered for the “Transport” (-2.8%) and “Household operation” (-3.1%) sectors, which contributed with an effect of -0.40 and -0.28 ppts, respectively. The
decrease in the remaining sector had an effect of -0.11 ppts on the CPI of September 2022. Aforementioned decreases were partially offset mainly by increases in the indices for the “Housing” (1.0%) and “Clothing and footwear” (7.1%) sectors, causing an effect of 0.25 and 0.17 ppts, respectively. The increasesin the remaining sectors had an effect of 0.16 ppts on the CPI of September 2022.
The decrease in the “Transport” sector was due to a decrease in the category “Operation of personal transport equipment” (-5.2%), which contributed to an effect of -0.47 ppts.
The decrease in the “Household operation” sector was mainly due to a decrease of 15.9% in the category “Furniture, furnishings, carpets and other floor coverings”, which contributed to an effect of -0.17 ppts.
The increase in the “Housing” sector was mainly due to an increase in the category “Maintenance and repair of the dwelling” (4.2%), which contributed to an effect of 0.21 ppts. The increase in the “Clothing and footwear” sector was mainly due to an increase of 8.5% in the category “Clothing”, which contributed to an effect of 0.16 ppts.
Consumption basket
The consumption basket of the CPI consists of 408 goods and services. Compared to August 2022, 53.7% of these products had an increase in price, causing an effect of 1.18 ppts, while 29.7% showed a decrease, contributing to an effect of -1.39 ppts and the remaining 16.7% had no change in price. The prices of goods decreased by 0.2% and caused an influence of -0.11 ppts. The prices of services decreased by 0.3% had an influence of -0.10 ppts on the CPI of September 2022.
Core inflation
The CPIC (core inflation) – CPI excluding the effect of energy and food – was 2.7% in September 2022. The energy index – which consists of the products: electricity, water, gasoline and diesel – was 11.9%. The food index showed an increase of 8.0%.
Subsistence level
The subsistence level for a household consisting of two (2) adults and two (2) children (aged 0-14 years) in September 2022 is Afl. 5,309, an increase of Afl. 470 compared to September 2021 (Afl. 4,839). The subsistence level for a single adult household is Afl. 2,528, an increase of Afl. 224 compared to September 2021 (Afl. 2,304).
Change in prices of crude oil, utilities, gasoline and diesel in September 2022
The prices of utilities (electricity and water), gasoline and diesel are for the greater part determined by international crude oil prices. In September 2022 the average price per barrel of crude oil (US$ 85.37) had a decrease of US$ 8.37 (-8.9%) compared to August 2022 (US$ 93.74), its third decline in a row.
In September the average electricity price per household did not change compared to August 2022 and remained at Afl. 294.56, while the average price of water per household increased by 0.6% from Afl. 167.75 to Afl. 168.73 and had an effect of 0.02 ppts on the CPI of September.
In September 2022 the price of gasoline registered a decrease of Afl. 25.20 cents (-8.6%) and had an effect of -0.49 ppts on the CPI. The price of diesel registered a decrease of Afl. 8.60 cents (-3.1%) and had an effect of -0.01 ppt on the CPI of September 2022.
In September 2022, utilities, gasoline and diesel as a group showed a decrease in price of 2.5% compared to August 2022, and had an influence of -0.48 ppts on the CPI, while the remaining 404 goods and services, as a group, show an increase of 0.3% and had an effect of 0.26 ppts on the CPI.
Change in prices of Food & catering services in September 2022
The “Food & catering services” index showed an increase of 0.5% in September 2022, after an increase of 1.4% in August 2022. The index for “Food at home” showed an increase of 0.6% in September, as nine (9) of the eleven (11) “Food at home” indices increased in September 2022. The “Potatoes and other tubers” index registered the largest increase (4.0%) in September 2022. Furthermore, other significant increases were posted in the indices for “Fruit” (2.9%), “Oils and fats” (2.3%), “Non-alcoholic beverages” (1.3%) and “Bread and cereals” (1.1%). The only decreases were registered in the indices of “Vegetables” (-2.6%) and “Fish and other seafood” (-1.2%).
Over the last twelve (12) months, the “Food & catering services” has increased by 10.3%. The “Food at home” index showed an increase of 12.1%, where all of the “Food at home” indices increased over the last year. The “Oils and fats” index increased by 17.4%, the largest increase among the “Food at home” food groups. Furthermore, other significant increases were posted in the indices for “Meat” (16.0%), “Fruit” (14.4%), “Milk, cheese and eggs” (13.6%), “Fish and other seafood” (13.1%) and “Potatoes and other tubers” (12.3%).
The index for “Food away from home” increased by 0.4% in September 2022 and has increased by 5.9% over the last twelve (12) months. In September 2022, “Food at home” and “Food away from home” as a group showed an increase in price of 0.5% compared to August 2022, and had an influence of 0.08 ppts on the CPI, while the remaining goods and services, as a group, experienced a decrease in price of 0.4%, causing an effect of -0.30 ppts on the CPI.
The subsistence level in September 2022
The subsistence level is the minimum level of income which is perceived necessary to achieve an adequate standard of living in a given country. The subsistence level is usually determined by estimating the cost of all the essential resources that an average adult consumes in one month or year. This is commonly called a basic needs index, and varies according to the price of food, clothing, housing, transport and other items in the “basket”.
Equivalent scales are used to adjust the assumed standard of living, of households of different sizes and composition. The scale assigns a weight of 1.0 for the first adult and 0.5 for each additional adult in the household (aged 15+) and a weight of 0.3 for each child (aged 0-14 years). The subsistence level is based on figures of the report “Bestaansminimum 2010” published by the CBS in December 2010 and is monthly updated for inflation using the monthly CPI. The reference unit used in this report is a household consisting of two (2) adults and two (2) children (aged 0-14 years).
In September 2022 the monthly subsistence level for a household consisting of two (2) adults and two (2) children (aged 0-14 years) (Afl. 5,309) showed an increase of Afl. 470 compared to September 2021 (Afl. 4,839) and was mainly caused by increases of Afl. 234 and Afl. 167 in the sectors
“Food and non-alcoholic beverages” and “Housing”, respectively.
In September 2022, the monthly subsistence level for a single adult household is Afl 2,528, which represents an income deficit of Afl. 713, an increase of Afl. 224 compared to the deficit observed one year ago (Afl. 489). This deficit is the highest registered over a period of six (6) years for the month September.
