A New Consumer Price Index Basket for the Cayman Islands 

The task of compiling a new Consumer Price Index (CPI) “basket” was recently completed.  

The basket consists of consumer goods and services that are monitored regularly to measure the general consumer price level and inflation rate in the Cayman Islands. 

The basket was compiled through a very thorough data collection process starting with the Household Budget Survey 2023, a follow-up survey of providers since the third and fourth quarters of 2024, and a validation process in 2025. 

The new basket is presented in the report “Cayman Islands’ 2025 Consumer Price Index Basket Report,” released by the Economics and Statistics Office.

The 2025 CPI basket is expected to result in more accurate CPI inflation statistics, as it replaces the 2016 CPI basket currently in use. 

CPI statistics are commonly used in the review of pensions, electricity rates and cost-of-living adjustments (COLA).  

More information from The Cayman Islands’ 2025 Consumer Price Index Basket Report may be downloaded from www.eso.ky 

Cayman Islands’ economy grew 3.1% in 2024

The Cayman Islands’ economy continued its growth streak in 2024, with real GDP expanding by 3.1% to $5.21 billion, underpinned by expansion across all major sectors. Financial services, which account for over 30% of GDP, had a solid 2.9% increase, driven by robust demand and the jurisdiction’s growing share in global insurance markets. This was the highlight of The Cayman Islands’ Annual Economic Report 2024, released by the Economics and Statistics Office (ESO). 

The economic performance for the year was largely driven by the services sector, which accounted for 89.1% of GDP and increased by 2.9%.  Actual indicators suggest robust growth in the construction sector (up 3.0%), real estate (2.9%), other services (up 3.1%), the wholesale and retail trade sector (up 3.7%), and health and social work (up 3.0%). 

Overall, the 2024 economic outturn signals continued confidence in the Cayman Islands’ development, while pointing to a generally synergistic and integrated economy with complementary sectors.  

The government ended the year with a net borrowing of $6.5 million. This resulted from the total revenue of $1,127.1 million falling below its total expenditure of $1,133.6. Despite the excess spending for the period, the central government’s outstanding debt decreased to $405.2 million at the end of 2024, representing a 10.6% decrease from the figure recorded at the end of 2023.

For more information on The Cayman Islands’ Annual Economic Report 2024, please visit www.eso.ky.

The Inflation Rate was 1.9% for the second Quarter of 2025

The second quarter inflation rate was 1.9 percent, and among the main contributors was an 8.4 percent rise in the restaurant and hotels division. The upward movement of restaurants and hotels was primarily due to a significant rise in the index for restaurants, cafes and the like, 10.2 percent, as well as a 3.0 percent increase in the price of accommodation services (local and abroad).

There was also an 8.0 percent upward movement in communication, a 7.2 percent rise in education, 4.6 percent in clothing and footwear, 3.4 percent in health, 3.1 percent increase in food and non-alcoholic beverages, 2.6 percent in alcoholic beverages and tobacco, 1.2 percent in recreation and culture, 4.1 percent in transport, furnishings, household equipment, 0.8 routine household maintenance and 0.3 percent in miscellaneous goods and services.  Housing and utilities declined by 1.6 percent. 

A comparison of the second quarter of 2025 with the first quarter of 2025 indicates that the CPI increased by 0.1 percent, as the index for communication went up by 5.7 percent. The upward movement of communication is due to the 6.0 percent increase in telephone and telefax services and the 3.2 percent increase in telephone and telefax equipment. 

There was also an increase in clothing and footwear (2.3%), restaurants and hotels (1.2%), education (0.7%), alcoholic beverages and tobacco (0.5%), housing and utilities (0.5%) and miscellaneous goods and services (0.4%). Transport (2.8%), food and non-alcoholic beverages (0.3%) and health (0.1%) declined over the quarter.  

More information from The Cayman Islands’ Consumer Price Index Report: April to June 2025 may be downloaded from www.eso.ky  

Cayman Islands Records 2.9% GDP Growth in first quarter 2025 as Demand for Services Drives Expansion

Preliminary estimates show that the Cayman Islands’ economy expanded at an annualised rate of 2.9% in the first quarter of 2025, slightly moderating from the 3.6% growth estimated in Q1 2024. The expansion was broad-based, fueled by sustained demand across core service industries. Notable expansions include electricity and water supply (4.6%), hotels and restaurants (4.5%), business activities and administrative services (4.3%), health and social services (4.7%), and finance and insurance services (2.9%). Key infrastructure sectors also posted gains, with wholesale and retail trade up 3.9%, and construction increasing by 2.3%. The performance reinforces a positive outlook, with real GDP projected to grow by 2.6% for the year

The central government recorded an overall surplus of CI$244.8 million in the year’s first three months. This reflected revenue of $554.1 million and expenditure of $309.3 million.

The central government’s outstanding debt declined to $396.9 million as of March 2025 from $445.9 million as of March 2024. 

For more information on “The Cayman Islands’ First Quarter Economic Report 2025,” please visit www.eso.ky.