According to the latest data released by the Department of Labor in Puerto Rico, the inflation rate in the country increased by 5.1% year-over-year in March 2023.
All categories experienced some level of inflation during this period, with Food and Beverages experiencing the highest inflation rate of 10.1%. This increase was likely due to the rising cost of food commodities, such as meat and dairy products, which have been impacted by supply chain disruptions and rising input costs.
Housing, Transportation, and Other Goods and Services also experienced significant inflation rates of 2.7%, 2.8%, and 9.1%, respectively. This is likely due to the continued impact of the COVID-19 pandemic, which has led to higher demand for housing and transportation services and disrupted supply chains for goods and services.
Apparel experienced a relatively modest inflation rate of 1.9%, while Medical Care and Education and Communication experienced the lowest inflation rates of 0.3% and 3.0%, respectively. Overall, the rising inflation rate in Puerto Rico is a cause for concern for consumers and policymakers alike. Higher inflation can lead to decreased purchasing power for consumers and can make it more difficult for businesses to plan for the future. Policymakers may need to take steps to address the root causes of inflation, such as addressing supply chain disruptions and increasing access to affordable housing and transportation services.