The Statistics Division within the Ministry of Finance and Corporate Governance has reported a 1.4 percent decline in the Consumer Price Index (CPI) for the twelve months ending August 2025, marking a notable shift driven largely by steep reductions in transportation costs and household furnishings.
According to the latest data, the most significant contributor to the overall decrease was a sharp 28.7 percent drop in the Transport Services index. This decline was influenced mainly by dramatic reductions in airline fares, particularly on flights to Barbados, where the average ticket price fell from $4,037.31 to $1,328.56 over the one-year period. The category for Furnishings, Household Equipment, and Routine Household Maintenance also recorded a decline of 2.9 percent, with notable reductions in the cost of furniture, carpets, floor coverings, glassware, and general household utensils.
Despite the overall downward movement, the Food index increased by 1.1 percent year-on-year. The rise was largely attributed to higher prices for vegetables, fruits, and meat products. Processed and frozen vegetables saw the largest increase within the group, rising 7.2 percent, while processed fruit products climbed by 17.8 percent. These increases were strong enough to offset declines in several other food sub-categories. Meanwhile, the index for All Items Less Food and Energy fell by 2.1 percent, reflecting the reductions in transport, home furnishings, and clothing and footwear.
The Statistics Division also reported that on a month-to-month basis, the CPI decreased by 0.3 percent between July and August 2025. This movement was influenced chiefly by lower prices for actual rentals for housing, which declined by 1.2 percent, and reductions in Food and Non-Alcoholic Beverages, which fell by 0.4 percent. Six of the nine major supermarket food groups recorded decreases during the month, with the most significant declines appearing in fruits, meats, and bread and cereals. The Fruit index dropped 9.5 percent in August, while meat and meat products decreased by 5.1 percent, and bread and cereals fell by 1.9 percent.
Not all categories moved downward, however. Oils and fats increased by 6.3 percent, vegetables rose by 4.4 percent, and fish and seafood climbed by 1.9 percent during the same period. The index for All Items Less Food and Energy also fell slightly, declining by 0.2 percent due to reductions in housing rentals, alcoholic beverages, household equipment, and routine maintenance goods. These movements offset moderate price increases in clothing, transport services, and miscellaneous goods and services.
The CPI, which measures the average change over time in the prices paid by households for a fixed basket of goods and services, is a central indicator of inflation and consumer purchasing power. The Statistics Division compiles this index through regular price collection from retailers and service providers, combined with household expenditure patterns derived from national budget surveys.
The full August 2025 CPI report is available below.
