US embassy cable - 05PORTAUPRINCE1506

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.