Identifier
Created
Classification
Origin
06PORTAUPRINCE2066
2006-10-27 17:24:00
UNCLASSIFIED
Embassy Port Au Prince
Cable title:  

HAITI: INFLATION

Tags:  ECON EAID PGOV PINS HA 
pdf how-to read a cable
VZCZCXRO2760
PP RUEHQU
DE RUEHPU #2066 3001724
ZNR UUUUU ZZH
P 271724Z OCT 06
FM AMEMBASSY PORT AU PRINCE
TO RUEHC/SECSTATE WASHDC PRIORITY 4418
INFO RUEHZH/HAITI COLLECTIVE PRIORITY
RUEHBR/AMEMBASSY BRASILIA PRIORITY 1265
RUEHSA/AMEMBASSY PRETORIA PRIORITY 1102
RUEHQU/AMCONSUL QUEBEC PRIORITY 0607
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS PORT AU PRINCE 002066 

SIPDIS

SIPDIS

STATE FOR WHA/CAR
EB/IFD
S/CRS
STATE PASS TO USAID FOR LAC/CAR
INR/IAA (BEN-YEHUDA)
COMMERCE FOR SCOTT SMITH
TREASURY FOR JEFFREY LEVINE
WHA/EX PLEASE PASS TO USOAS

E.O. 12958: N/A
TAGS: ECON EAID PGOV PINS HA
SUBJECT: HAITI: INFLATION

UNCLAS PORT AU PRINCE 002066

SIPDIS

SIPDIS

STATE FOR WHA/CAR
EB/IFD
S/CRS
STATE PASS TO USAID FOR LAC/CAR
INR/IAA (BEN-YEHUDA)
COMMERCE FOR SCOTT SMITH
TREASURY FOR JEFFREY LEVINE
WHA/EX PLEASE PASS TO USOAS

E.O. 12958: N/A
TAGS: ECON EAID PGOV PINS HA
SUBJECT: HAITI: INFLATION


1. Summary: Inflation for September 2006 was 1.5 percent.
Inflation for the past twelve months was 12.4 percent, which
overshot the IMF target of ten percent. Failure to meet the
inflation target was due largely to the continuing impact of
high oil prices. End Summary.

Inflation still in double digits in September
- - - - - - - - - - - - - - - - - - - - - - -


2. According to just-released figures from the Haitian
Institute of Statistics, overall inflation for September 2006
was up 1.5 percentage point. Inflation for the past twelve
months was 12.4 percent.


3. Much of September's rise was due mainly to increases in
tuition fees (4.6 percent for the month),school textbooks
costs (38.7 percent),rent and utilities (1.3 percent),and
transportation cost (1.2 percent). Food price rose by 1.3
percent for the month.

Failure to meet the inflation target
- - - - - - - - - - - - - - - - - -


4. The 12.4 percent inflation rate for fiscal year ending
September 2006 means that Haiti missed the IMF target set out
in the Emergency Post Conflict Assistance (EPCA) program.
The inflation target was ten percent.


5. Failure, however, was due to several exogenous shocks,
including principally continuing high oil prices. Haiti is
very much dependent on foreign oil; high prices hurt
transportation and food prices, two of the larger components
of the index. Also fueling September inflation was the
violent ten-week long protest and strike of truck drivers at
the Malpasse Border, which shut down that customs office
until mid-September. This made it difficult for many
incoming goods from Dominican Republic to reach markets.

TIGHE