- Written by Kevin Kerrigan
Topping the list of increases were energy costs which "dramatically increased" by 7.7%, followed by Housing prices which rose 5.5%, the cost of buying food grew 4.4%; services were up 3.4% and transportation costs rose 2.6%.
According to a release from the Bureau of Statistics, "there appears to be a structural adjustment to prices given a resurgence of crude oil price increases. What happens to crude oil prices in the next 9 months is telling how far overall prices move and what direction. Energy prices, nevertheless, appear to be sticky downwards."
READ the Buerau of Statistics and Plans News release in FULL below:
July 7, 2011
The Bureau of Statistics and Plans has just released the 2011 2nd Quarter Consumer Price Index, enabling users to draw comparisons across all groups, subgroups and special price indexes each quarter since base year 2007. The Bureau makes this report available in digital format which can be downloaded directly from our website or electronically disseminated as a subscription service.
The Guam 2011 2nd quarter CPI of 112.9 shows a 2.8 percent increase over the first quarter of 2011 and 3.7 percent when compared to the 2nd quarter of 2010. In the 2011 2nd quarter CPI, Food prices increased by 4.4 percent, Housing by 5.5 percent and Transportation by 2.6 percent as compared to the previous quarter. All other groups showed modest changes. Energy prices, however, dramatically increased by 7.3 percent over the previous quarter, as have Services by 3.4 percent.
After careful inspection of recent price data there appears to be a structural adjustment to prices given a resurgence of crude oil price increases as occurred in 2008. In the 2008 2nd quarter CPI, Food prices increased by 3.0 percent, Housing by 5.2 percent and Transportation by 3.7 percent as
compared to the 1st quarter of 2008. Energy prices increased by 6.6 percent over the previous quarter, as have Services by 3.0 percent. All other groups showed modest changes. What happens to crude oil prices in the next 9 months is telling how far overall prices move and what direction. Energy prices, nevertheless, appear to be sticky downwards.
At this juncture, there is no short term expectation that crude oil prices will return to 2009 levels. There is, however, an announced certainty that our local utility and solid waste management companies are raising rates to Guam consumers in the year to come. And, higher Guam Customs user fees are being proposed which will affect the costs of all imported goods. With an unemployment rate of 13.3 percent, this will put even more pressure on residents to find permanent jobs to help make ends meet, let alone afford the cost of home ownership. More conscious thought must be given to consumerism and getting the most “bang” for every dollar earned and spent. Most businesses will continue to supply goods and services most in need despite narrowing profit margins. Yet, others will flourish.