Consumer Price Index

PRICES UP 0.4% IN AUGUST

During the month of August 2016, the Statistical Institute of Belize recorded that on average, the prices of goods and services purchased by Belizean households were 0.4 percent higher than they were in August of 2015. The All-Items consumer price index stood at 103.7, a slight increase from 103.3 in the same period last year. For the first eight months of this year, an inflation rate of 0.5 percent was recorded.

The 'Food and Non- Alcoholic Beverages' category saw a 0.8 percent decrease in comparison to August 2015, primarily due to a fall in the prices of some staple food items. The average price of eggs saw a decline of 14 percent, while that of cooking oil dropped by 11 percent. These overshadowed an increase of almost one third in the price per pound of sugar, which took effect at the start of the year.

Within the 'Transport' category, international airfares remained considerably lower in August 2016 than they were last year, with prices declining by 26 percent in comparison to August 2015. Fuel prices, on the other hand, rose by 4 percent during the month, with the most significant jump being recorded for diesel, which rose by 16 percent. This increase in fuel prices was sufficient to offset the lower airfares recorded for the month and, as a result, the 'Transport' category as a whole remained unchanged from August 2015.

Consistent with trends over the past months, home rental prices rose by 0.8 percent during August 2016, while the average price of a 100-pound cylinder of Liquefied Petroleum Gas (LPG) fell 3 percent from $90 in August 2015 to $88 in August 2016. Despite a rate increase which came into effect in July, electricity tariffs for August 2016 were still almost 11 percent lower than in the same month of 2015. As a result, prices for the category of 'Housing, Water, Electricity, Gas and Other Fuels' recorded an overall increase of 0.4 percent compared to August 2015.

Price increases were also recorded for doctors' consultation fees, while premiums for both health and motor vehicle insurance saw slight decreases during the month.

All municipalities recorded increases in consumer prices during the month of August 2016, except for Dangriga and Punta Gorda Town, which saw consumer prices falling by 1.1 percent and 0.4 percent, respectively. Corozal Town recorded the highest inflation rate at 1.9 percent, caused primarily by higher home rental costs.

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External Trade Bulletin

IMPORTS UP 5%, EXPORTS UP 67%

IMPORTS

AUGUST 2016: During the month of August 2016, Belize imported goods valued at almost $163 million, rising by 5.3 percent or $8.2 million from the $154.8 million imported in August of 2015.

Increased purchases of telecommunications equipment, motor boats and aircraft engines led to a $9 million growth in imports of 'Machinery and Transport Equipment', while the $7 million rise observed in goods destined for the 'Commercial Free Zones' was largely the result of an increase in the importation of school bags, purses and various clothing items. The 'Other Manufactures' category rose from $12 million in August 2015 to $18 million in August 2016, due to heightened purchases of sporting equipment and prefabricated buildings, while a spike in lard (shortening) imports drove the 'Food and Live Animals' category up by $2 million.

Good destined for the 'Export Processing Zones' dropped substantially, from $9 million to $3 million, owing to reduced imports of manufacturing equipment, including parts for vapour turbines and heat pressing machines, as well as structures made of iron and steel. Reduced fertilizer imports resulted in a $4 million fall in the 'Chemical Products' category. Notably, the quantities of regular, premium and kerosene fuels imported declined by 25 percent each during the month, resulting in a $3.6 million decrease in the 'Mineral Fuels and Lubricants' category. A $1 million decline in the category of 'Beverages and Tobacco' was the result of a distinct drop in beer imports for the month.


FIRST EIGHT MONTHS OF THE YEAR: Since the start of 2016, Belize has imported $1.3 billion worth of goods, representing a 2.4 percent or $32 million decrease from the corresponding eight-month period in 2015.

The 'Export Processing Zones' and the 'Mineral Fuels and Lubricants' categories experienced the steepest declines over the period, with imports of the former falling by $43 million due to less shrimp feed imports, while that of the latter dropped by $39 million, mainly due to lower world market prices for fuel. Imports of 'Machinery and Transport Equipment', on the other hand, grew by $58 million, most of which was accounted for by an increase in purchases of parts for telecommunications equipment.

EXPORTS

AUGUST 2016: Belize's domestic exports for August 2016 totaled $59.3 million, up 66.9 percent or $23.8 million from the $35.6 million exported in August 2015.

As expected, a bulk shipment of sugar was the principal cause of this significant rise in exports, with sugar sales for the month jumping from $1 million in August 2015 to $34 million in August 2016. For the second consecutive month, sugar production from western Belize contributed a sizeable amount to exports for the month, with sales from this region totaling $5.6 million.

Owing to diminished shrimp sales, marine exports fell from $7 million to $3 million, while citrus concentrate exports were reduced from $7.6 million to almost $5 million, due mostly to lessened orange concentrate sales for the month. Banana and crude petroleum exports remained relatively stable, each recording little to no change when compared to August 2015.

FIRST EIGHT MONTHS OF THE YEAR: Merchandise exports for the first eight months of 2016 totaled $321.2 million, an $83 million or a 20 percent drop from the same period last year.

Despite sugar's strong performance for August 2015 and an increase of more than 25 percent in the volume of sugar exported over the eight month period, earnings from this product were down by 2.5 percent compared to 2015. This was as a result of lower prices for this commodity on the European market. In contrast, more favorable world market prices led to a 3.5 percent increase in citrus concentrate earnings, notwithstanding a reduction in the volume of orange concentrate exports. Earnings from marine products, bananas and crude petroleum dwindled by a combined $72 million over the eight month period.

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You may download the entire series for both External Trade and CPI in Excel format from the Statistical Institute of Belize website: (http://www.sib.org.bz/statistics)