The Consumer Price Index (CPI) reached 118.67 in December 2018. This represents a reduction of 0.6% compared with November. However, in comparison with December 2017 (117.97) the index reveals an inflation of 0.30%. This means that prices were higher this December than in 2017.
December closed natural year 2018 and in an aggregate analysis 2018 had an average Consumer Price Index of 119.37, 1.15% more than in 2017. This means that goods and services in Puerto Rico were 1.15% more expensive than in 2017.
Inflation refers to the increase in the price level that is sustained over a period of time, high or volatile inflation rates is negative for economic growth, a low and stable inflation rate is a key objective. Inflation is measured by the CPI, the most widely used measure of the price levels, it is calculated based on a fixed basket of goods and services purchased for consumption by a typical household in Puerto Rico in a specific moment of time (it is updated after several years). The basket may vary by the country, but most countries have in their basket food, alcoholic beverages, clothing and footwear, household equipment, health expenses, transportation, communications, gas/fuel, recreation, education, restaurant, hotels and others. Inflation expectations influence actual pricing decisions by businesses.
The CPI and inflation is available for sub indexes like Food & Beverage for consumption in the house as well as outside the home, alcoholic beverages, health care, restaurants, entertainment, motor vehicles, fuel, communications, education and much more in our Economic Indicators Portal. We analyze the data as soon as it is released and explain more in depth why the indicators behaved that way and what to expect applied to your industry. Click here for more information.