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2018 Annual Economic and Financial Review
ANGUILLA
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24
Eastern Caribbean Central Bank
Prices, Wages and Employment
The consumer price index fell by
0.4 per cent, on an end-of-period basis,
following growth of 1.4 per cent during
2017.
The decrease in prices was driven by
contractions in the sub-indices for recreation
and culture (12.6 per cent), transport
(6.1 per cent), communication (1.6 per cent)
and hotels and restaurants (1.5 per cent). The
decline in the recreation and culture sub-index
was mainly influenced by promotional
incentives for TV services, while the
reduction in the price of fuel and lubricants
drove the decrease in the transport sub-index.
For the communication sub-index, a decline in
the average cost of a telephone call and cell
phones influenced the downward movement in
prices, while the reduced average cost of a
meal pushed the restaurants and hotel sub-
index lower. By contrast, the decrease in the
general price index was mitigated by growth
in the remaining sub-indices including
clothing and footwear (7.2 per cent);
household furnishings, supplies and
maintenance (5.8 per cent); miscellaneous
goods and services (2.7 per cent) and food and
non-alcoholic beverages (2.6 per cent). In
addition, the housing, utilities, gas and fuels
sub-index, which accounts for 25.6 per cent of
the weighted CPI index, rose by 1.4 per cent
on account of an increase in the price of
electricity, coupled with a rise in the cost of
maintenance and repair of dwellings.
Based on the strength of construction activity
in 2018, coupled with the recovery of the
tourism industry in the fourth quarter,
employment levels are estimated to have
increased, as persons who were previously
unemployed or underemployed were rehired
on a full time basis in the hospitality sector.
Fiscal and Debt Developments
The fiscal operations of the central
government resulted in an overall surplus of
$2.4m (0.3 per cent of GDP) in 2018,
compared with one of $4.3m (0.6 per cent
of GDP) in 2017.