📉 Inflation rate slows in 2024 but cost of living continues to cripple families

In the second quarter of 2024, the Consumer Price Index (CPI) rose to 132.7, marking a 1.7% increase from the same period in 2023. Despite this seemingly minor increase, the cost of living continues to burden families in Cayman, particularly due to high housing costs, food prices, and school fees. The CPI report from the Economics and Statistics Office indicates a year-to-date inflation rate of 1.7%, largely influenced by the volatile price of oil and fuel. However, even a slight increase in inflation contributes to the ongoing cost of living crisis in Cayman, impacting even the more affluent households. 📊

Education costs have seen a significant rise, with secondary school fees increasing by over 9%. Food prices have also climbed, with cooking oils and fats seeing a 6.6% increase, meat products rising by 4.7%, and bread prices increasing slightly above the overall inflation rate. Housing costs, particularly rents, continue to surge, with an 8% increase in residential accommodation costs. This rise not only affects low-income families but also hinders businesses from recruiting low-paid workers who can't afford to live in the area due to poor wages. 🏫🍞🏡

Labour Minister Dwayne Seymour has expressed dissatisfaction with the proposed increase in the minimum wage, which remains one of the lowest globally. This could delay salary increases for those earning $6 an hour, except for those in hospitality, where the basic wage will increase to $7 per hour in July. The decision to reject the proposed basic wage increase to $8.75 could further suppress wages, exacerbating the widening gap between the rich and the poor in Cayman. 💰