Identifier
Created
Classification
Origin
05PORTAUPRINCE1506
2005-06-01 16:56:00
UNCLASSIFIED
Embassy Port Au Prince
Cable title:  

Haiti: Inflation Jumps in April

Tags:  ECON EFIN PGOV HA 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS PORT AU PRINCE 001506 

SIPDIS

STATE FOR WHA/CAR
EB/IFD/ODF
EB/IFD/OMA
WHA/EPSC
INR/IAA/MAC
STATE PASS AID FOR LAC/CAR
USDOC FOR 4322/ITA/MAN/WH/OLAC (SMITH, S.)

E.O. 12958: N/A
TAGS: ECON EFIN PGOV HA
SUBJECT: Haiti: Inflation Jumps in April

UNCLAS PORT AU PRINCE 001506

SIPDIS

STATE FOR WHA/CAR
EB/IFD/ODF
EB/IFD/OMA
WHA/EPSC
INR/IAA/MAC
STATE PASS AID FOR LAC/CAR
USDOC FOR 4322/ITA/MAN/WH/OLAC (SMITH, S.)

E.O. 12958: N/A
TAGS: ECON EFIN PGOV HA
SUBJECT: Haiti: Inflation Jumps in April


1. According to figures from the Haitian Statistical
Institute, overall inflation for April 2005 was 2.37 percent
(a yearly rate of 32.5 percent),over twice that of last
month's 0.92 percent (yearly 11.6 percent) rate. Year-to-
year inflation stands at 12.8 percent.


2. Much of April's rise was due to increases in the price
of transportation, up 5.32 percent in April (a yearly rate
of 86.3 percent). Politically sensitive food prices rose as
well, up 2.98 percent in April (a yearly rate of 42.2
percent). Specifically, staples were up including dry beans
(11.47 percent),chicken (3.69 percent),powdered milk (3.13
percent),fresh fish (2.86 percent),and plantains (2.49
percent).


3. COMMENT: Transportation price rises were due mostly to
global rises in the price of oil, which reverberates down to
all other parts of the Haitian consumer basket as well.
Exacerbating the situation for food prices was the lack of
rain earlier in the year and lower imports due to violence
around the port area. Despite the spike in April, yearly
inflation is still well below that of 2003 (40 percent) and
2004 (20 percent). If no further shocks occur, the IMF and
IGOH target of 12.0 percent by the end of the fiscal year on
September 30 is still attainable. END COMMENT.