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Prices Up 19.7% Since 2020, Real Incomes Shrink

The Consumer Price Index for August 2024 stands at 119.7, indicating that average prices have climbed by 19.7 percent since October 2020, eroding real incomes across the country.


For a person earning a nominal salary of $2,500 per month, the effect of this inflation is significant. With prices 19.7 percent higher than in 2020, their real income—adjusted for inflation—has effectively decreased to around $2,089. This represents a real loss in purchasing power, as essential goods and services become more expensive.


The inflation rate for Food and Non-Alcoholic Beverages rose by 5.1 percent in August 2024 alone, contributing heavily to the overall increase. The price of fresh vegetables, such as broccoli, cauliflower, and carrots, surged by 12.6 percent, while fruits like watermelons, grapes, and apples saw an 11.5 percent rise. Prices for cereals and bread increased by 2.3 percent, and fish and seafood costs jumped by 12 percent.


In the Housing, Water, Electricity, Gas, and Other Fuels category, prices rose by 1.7 percent, driven by higher home rental costs. The price of a 100-pound cylinder of liquefied petroleum gas (LPG) also increased slightly.

Meanwhile, the Transport category experienced a 2.2 percent rise, with diesel prices increasing by $0.67 per gallon. Passenger transport services, including bus and taxi fares, went up by 7.1 percent, marking the first increase in over a year.


Restaurants and Accommodation Services saw a 4.9 percent increase, mainly attributed to higher prices for dining out. Similarly, Personal Care products, such as deodorants and perfumes, rose by 4.4 percent, further stretching consumers' budgets.

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