In BSP’s annual Consumer Price Index report, the overall price index rose in this year, going from 109.8 in the first quarter to 112.9 in the second quarter of 2011. Compared to the second quarter of 2010 when the price index was at 108.9, the increase is 3.7 percent.
Most of the increase, the report indicates, can be attributed to the rise of crude oil prices, which have affected the rising cost of the island’s energy and transportation.
At this juncture, there is no indication that crude oil prices will return to 2009 levels; however, there is already an “announced certainty” that local utility and solid waste management companies are raising rates to Guam consumers within the next year, the report states.
Moreover, an increase in customs fees are also being proposed, which will affect the cost of imported goods, it adds.
These increases, coupled with the recently-reported unemployment rate of 13.3 percent, “will put even more pressure on residents to find permanent jobs to help make ends meet, let alone afford the cost of home ownership.”
“More conscious thought must also be given to consumerism and getting the most ‘bang’ for every dollar earned and spent,” the report states.
In just the second quarter of 2011, food prices increased by 4.4 percent, housing by 5.5 percent, and transportation by 2.6 percent, compared to the first quarter of this year. The largest increase, however, was energy — 7.3 percent — compared to the first quarter of this year. The cost of services also increased by 3.4 percent in the second quarter of 2011.
