Antigua and Barbuda rental costs rise 8.9% as household budgets face pressure

Antigua and Barbuda is witnessing an 8.9% rise in rental costs while other household expenditures continue to adversely impact the household budget. The Statistics Division’s September CPI reported an 8.9% increase in rental costs compared to last year.

The households whose incomes have not risen, the impact on them is even more severe. Higher rent has left less money and less purchasing power in the hands of households to purchase groceries, utilities, school expenditure and other expenses.

For individuals who are considering shifting, the accommodation could be expensive in terms of advanced deposit, rent and transportation. Living far away from school could further lead to increased transportation costs.

The overall inflation reached 7% with transportation costs up 12%. These figures belong to a period before the rise of gasoline prices in October this year. Now the tenants will have to pay more for ensuring a roof on their heads.

The housing expenditure carries considerable weight while calculating Inflation in Antigua and Barbuda. Expenditures such as water, electricity, gas and other fuels account for 28.06% of the CPI. Actual rent alone constitutes 19.81%, implying that changes in rent could lead to impact on Consumer Price Index.

The detailed figures show that the accommodation price rise was not restricted to rent alone. Other factors such as electricity, water etc. are also witnessing a rise in costs. Housing, gas , water, electricity increased by 12.6% over the 12 months ending in September, and rose 2.4% between August and September.

The increase in rent comes at a time when consumers are already burdened with other expenses. Transport costs increased by 12% while communication costs increased by 23.1%.

The rise is in contrast to food prices which are falling. Food and non-alcoholic beverages declined by 1%, while the Food Index fell by 1.5%.