The Inflation Rate was 2.8% for the First Quarter of 2026

The first quarter inflation rate was 2.8 percent, and among the leading contributors was a 17.0 percent rise in the communication division. The upward movement of the communication index was primarily due to a 29.9 percent increase in the telephone and telefax equipment index.

There was also an 6.7 percent upward movement in household equipment, a 5.1 percent rise in restaurants and hotels, 4.0 percent in education, 3.6 percent in housing and utilities, a 2.6 percent increase in miscellaneous goods and services, 2.0 percent in clothing and footwear, 1.8 percent in food and non-alcoholic beverages, alcoholic beverages and tobacco, 1.3 percent and 0.2 percent in health. Transport and recreation and culture declined by 2.2 and 1.1 percent, respectively.

A comparison of the first quarter of 2026 with the fourth quarter of 2025 indicates that the CPI increased by 0.8 percent, as the index for communication rose by 6.3 percent and household equipment went up by 4.9 percent reflecting the increase in minimum wages that took effect in January. The upward movement of restaurants and hotels is mainly due to the 11.7 percent increase in the index for accommodation services (local & abroad) and the 1.9 percent rise in restaurants, cafes, and the like.

There was also an increase in transport (2.1%), health (1.1%), alcoholic beverages and tobacco (0.6%), clothing and footwear (0.2%), and miscellaneous goods and services (0.1%). Food and non-alcoholic beverages (1.1%), recreation and culture (0.5%) and education (0.5%) declined over the quarter.

More information from the Cayman Islands’ Consumer Price Index Report: January to March 2026 may be downloaded from www.eso.ky