Consumer price change in the Caribbean Netherlands since 2014. CBS graphic.
SABA/ST. EUSTATIUS--Consumer prices in Bonaire, St. Eustatius, and Saba dropped by record levels in the third quarter of 2020, according to provisional figures by national statistics bureau CBS.
In the third quarter, consumer goods and services were on average 4.8 per cent cheaper in Bonaire compared to the same period in 2019. In St. Eustatius and Saba, the average decreases were 3.3 and 1.6 per cent, respectively.
These were the largest consumer price reductions since CBS started measuring the figures in 2011.
However, the record reductions may be inflated by recent subsidies from the Dutch central government.
CBS says the decreases are partly attributable to electricity, drinking water and Internet allowances. Since May, the fixed user tariffs for electricity and drinking water have been erased, while Internet subscribers receive a monthly discount of US $25 on their bills.
“In the third quarter, the subsidies had an effect on all three months, while in the second quarter this only applied to May and June. The full effect of the subsidies is therefore only visible in the third quarter,” said CBS.
In Bonaire, the price of water was down 27.4 per cent compared to the same period in 2019, while electricity and telecommunications prices decreased by 33.1 and 18.7 per cent, respectively.
Bonaire’s fuel prices declined as well, with gasoline being 17.2 per cent cheaper and diesel fuel dropping by 33.9 per cent. Compared to the second quarter of 2020, the price of gasoline dropped 21.8 per cent and of diesel fuel, by 37.8 per cent.
In St. Eustatius, electricity and telecommunications were 27.9 and 18.1 per cent cheaper, respectively, compared to the third quarter of 2019. Electricity was 21.9 per cent cheaper compared to the second quarter of this year.
Saba saw the biggest drop in electricity prices; consumers’ bills decreased by 46.9 per cent – almost half. Telecommunications were 12.2 per cent cheaper compared to the same period in 2019.
Saba’s electricity prices were 33.6 per cent lower compared to the second quarter of this year.
“Bonaire was in a soft lockdown from September 21 to 30, 2020, which impacted in-store price observation on this island. Prices for some products could not be observed. This was not the case in St. Eustatius and Saba. However, due to government measures, some products and services on both islands were limited or unavailable in the third quarter of 2020,” said CBS.
CBS countered this problem by compiling prices through the Internet (online shopping) or by requesting them from the businesses via e-mail or telephone.
The consumer price figures for the third quarter of 2020 are provisional. The official statistics will be published when the fourth quarter figures are released later this year.
https://www.thedailyherald.sx/islands/consumer-prices-decrease-by-record-levels-in-the-caribbean-netherlands
