Cayman reels under rampant inflation

Cayman Island residents are feeling the effects of widespread inflation, currently running at 11.2 percent overall annually. As many will attest, housing and utilities (20.1%) and transport (15.75%) saw the highest increases in the year from March 2021-22. Food, gas and diesel, energy bills and water costs are going up at an alarming rate with wages stagnant. Many are tightening their belts to cope in these post-pandemic times.

The Consumer Price Index (CPI) increased by 11.2 percent in the first quarter of 2022 when compared to the same period in 2021. All twelve CPI divisions recorded increases in average prices. Clothing and footwear (8.0%) and household equipment (7.2%) also saw high increases.

In the first quarter of 2022, housing and utilities huge increases was due mainly to average cost of electricity rising by an astronomical 35.0 percent. Water supply costs increased by 25.3 percent, imputed rentals for owner-occupiers rose by 19.7 percent, materials for the maintenance and repair of the dwelling went up by 16.2 percent and actual rentals paid by tenants soared by 12.3 percent.

The transport index rose by 1.0 percent, and fuel prices climbed by an alarming 29.0 percent. The index for other services regarding personal transport equipment increased by 17.1 percent, and the index for the purchase of motor vehicles also went up by 14.7 percent.

Clothing and footwear rose by 8.0 percent in the first quarter of 2022. That’s because there was a 28.0 percent rise in the prices of footwear purchased abroad and a 7.9 percent increase in clothing purchased locally.

Unfortunately for Cayman residents, https://www.worlddata.info/ , lists the Cayman Islands as the third most expensive country in the world for expats behind Bermuda and Switzerland.

At least expats can rest assured that George Town is not one of the world’s most expensive places. Hong Kong is the world’s most expensive city to live in for foreign workers for a second consecutive year due to higher prices and a stronger currency.

New York and Geneva are second and third in the rankings, according to a study conducted in March by ECA International, a market research company that helps companies to calculate cost-of-living allowances for employees on international assignments. The report ranks 207 cities in 120 countries.

London and Tokyo round off the top five most expensive cities for foreign workers. Steep rent rises were part of the reason with the cost of leasing property in those cities increasing by 20 percent and 12 percent, respectively, according to ECA research.