Economic and Financial Review - June 2019

June 2019 Economic and Financial Review GRENADA

bakery products, represented by the output of flour decreased by 0.8 per cent. Among the other manufactured goods, output of toilet paper fell by 68.7 per cent attributable to the loss of some regional markets. The agriculture sector recorded lower activity, as farmers continued to grapple with the effects of pest infestation and weather related impediments. The reduction in activity was underscored by declines in the output of bananas (34.4 per cent) which offset higher production of nutmeg (54.7 per cent); cocoa (11.8 per cent); and mace which more than doubled to 39 tonnes. Further, the overall output of other crops, including fruits, vegetables, and ground provisions, is estimated to have contracted by 13.3 per cent to 988,481 pounds, and represented a steeper rate of decline than the 7.1 per cent reported in the first half of 2018. The fishing subsector registered a 6.9 per cent reduction to 2,072.6 tonnes in the volume of fish landed, in contrast to a 0.3 per cent rise in the first half of 2018. Inflationary pressures abated during the first half of 2019, as indicated by a decline in the consumer prices index. The index fell by 0.3 per cent, in contrast to a 0.8 per cent increase in the first half of 2018.

The major contributors to the decrease in commodity prices included; downward movements in the sub-indices for transport (1.4 per cent), and for the largest weighted sub-index, housing, utilities, gas and fuels (0.4 per cent). The drop in the CPI was also influenced by a 0.2 per cent decline in prices for household furnishings, supplies and maintenance. Meanwhile, the fall in the CPI was partially offset by advances mainly in the sub-indices for communication (0.5 per cent); clothing and footwear (0.9 per cent); and recreation and culture (0.4 per cent), respectively. Other notable increases were recorded for the sub-indices of health (0.2 per cent) and alcoholic beverages, tobacco and narcotics (0.2 per cent). A number of sub-indices remained unchanged over the period, headlined by the one for food and non- alcoholic beverages, which is the second largest weighted sub-index as it accounts for 20.0 per cent of the CPI basket.

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Eastern Caribbean Central Bank