Food prices continue to drive inflation, as the cost of transportation reduces according to recent SIB data.

by Marco Lopez

BELIZE CITY, Thurs. Jan. 11, 2024

These days, a trip to the market leaves one wondering where their money went. With the price of food items continually increasing, the size of the typical family’s grocery bag is getting smaller and smaller. Yesterday, the Statistical Institute of Belize (SIB) confirmed this – for the month of November 2023 at least. The Consumer Price Index (CPI) survey for November 2023 shows an overall national inflation rate of 4.2 percent. The All-Item CPI for that period stood at 117.7 – an increase from November 2022. National inflation has been virtually unchanged over the past two months, the SIB stated in its release. Higher food prices continue to be the primary contributor to the overall increase in the CPI.

An 11.6 percent increase in the cost of food products was recorded by the SIB. Rising restaurant costs was also a contributing factor. A slight decrease in fuel prices compared to the same period last year resulted in a decrease within the transport sector. An overall decrease of 5.8% in fuel prices, compared to the higher prices in November 2022, contributed to the fall in the transport sector prices.

This marginally slowed down the rise of consumer prices, the release states. Eye openers remain the drastic increase in the price of cilantro which saw a 165.3% increase, with a pound going from $7.47 to $19.81. Plantain saw a 66% increase, from $0.33 to $0.54; and a pound of cassava increased from $1.26 to $2.19 – a 74.2% increase compared to last year’s numbers.

The food subcategory alone recorded an inflation of 12.4 percent. As for the increase in Restaurants and Accommodations, that sector spiked by 14% – with higher restaurant and café services dominating the movement. A 6 percent increase in the cost of personal care products, social protection, and miscellaneous goods and services category was also recorded.

Due to higher prices of various types of over-the-counter medication, a 6.6 % increase in the health sector was recorded. Alcohol, tobacco, and narcotics grew by 5%.

Belmopan – for the fourth consecutive month – recorded the highest rate of increase in consumer prices across municipalities – 10% in total. Meanwhile, the twin towns of Santa Elena and San Ignacio saw the lowest increase in prices across municipalities.

External Trade, November 2023

Total imports for November 2023 were valued at $209.1 million – about a $65.2 million decrease from November 2022. The SIB release states that several commodity categories saw a decrease – the most significant in the Commercial Free Zone, Minerals, Fuel and Lubricants, and Food and Live Animals.

Goods destined for the Commercial Free Zone fell by almost two-thirds, from $57.6 million for the same period in 2022 to $19.8 million according to last year’s figures. Minerals, Fuels, and Lubricants fell by 35.1% from $39 million. The SIB release notes that this was a result of lower prices in the global markets across all major fuels and a significant drop in the import volume of diesel fuel.

Manufactured Goods fell by about $6.2 million, from $40.2 million in November 2022, to $34.2 million recorded last year. This decrease is due largely to a reduction in galvalume, and galvanized steel coils.

Imports from Food and Live Animal imports for November 2023 stood at $24.5 million, down from $29.1 million in the previous period.

Oils, Fats and Chemical Products were recorded as increased categories. Also increasing were the categories of Machinery and Transport Equipment imports and Crude Oil materials.

From January to November 2023 a total of $2.451 billion worth of goods were imported. This is a decrease of $89.9 million compared to the same period in 2022.

Domestic exports were up in November 2023, totaling $22.8 million for November 2023 – up by 1.5 percent or about $0.35 million compared to 2022 figures. Roughly half of the overall rise in exports is attributed to sugar and bananas. Earnings from sugar were valued at $6.5 million in November of 2023 and bananas were valued at $5.6 million for the month.

A boost in earnings from citrus products was recorded following an increase in the of sales grapefruit concentrate in the same period.

Some categories, like whole lobster exported in the month, decreased and resulted in a decline in revenues from marine products. Those numbers went from $4.8 million in November 2022, to $3 million last year. Animal feed fell by 50 percent, sales of black-eye peas were down as well, and there were no exports of red kidney beans or crude petroleum in November 2023.

Higher volumes of sugar were exported to the European Union and Caricom countries during the period. Earnings from the EU grew by $2.8 million to $47 million in November 2022, and exports to our sister countries in CARICOM rose by $2 million – from $5.2 million to $7.1 million.

Exports to the United States fell due to reduced cases of conch and bananas. Similarly, earnings from the UK decreased to $3.8 million due to decreased sales of wooden items.

From January to November 2023, exports totaled $382.2 million, a decrease of about $76.5 million from $460.7 in exports for the same period in 2022.