Inflation in the U.S. Virgin Islands eased slightly in 2024, but the territory’s consumers are still paying significantly more for essentials than their stateside counterparts, according to a newly released report by the Bureau of Economic Research. The annual Consumer Price Index, which tracks the average change in prices over time for a standard basket of goods and services, shows that costs in the territory rose by 7.1% last year — more than double the U.S. average of 2.9%.
While the number marks a modest improvement over 2023’s 8.4 percent rate, and the lowest recorded since 2020, the year-long stretch of elevated prices left little relief for Virgin Islands households. “Inflation remained above 6.0 percent for 10 months in 2024,” the bureau reported, underscoring that prices haven’t fallen — only that they’re rising more slowly. For many residents, the impact remains the same: food is more expensive, rent continues to climb, and basic services — from utilities to phone plans — cost more than ever.
The data also reveal stark differences across the islands. St. Thomas faced the sharpest price increases, ending the year with a 9.6% inflation rate — more than triple the national average. St. John followed at 5.8%, and St. Croix came in at 5.3%, showing the steepest year-over-year improvement after spiking to 9.3% in 2023. On St. Thomas alone, rent for a two-bedroom apartment jumped by more than 21%, while tuition rose 14.5% and cellphone plans climbed 25.9%.
Territory-wide, food prices rose 8.8%, with eggs up nearly 28%, vegetables up 30%, and fish surging by a staggering 33%. The average cost of a dozen eggs now sits at $14.49 —up from $12.16 the year before. The steep increase in grocery prices was compounded by a 6% rise in housing costs and continued upward movement in utility rates. Electricity rose 6.9%, water increased by 3.4%, and even cooking gas edged up slightly.
In a year where few costs held steady, the category of education and communication emerged as one of the biggest drivers of inflation, jumping 16.8%, nearly double its 2023 rate. Internet costs alone spiked 36.3%, and cell phone plan prices rose nearly 18% across the territory. The upward trend was felt most acutely on St. Croix, where education and communication costs increased by 17.6%, and on St. John, where transportation costs rose 9.2% — another burden in a community already stretched by high import costs.
There were small signs of reprieve. Used car prices declined by more than 11%, and some grocery items, like milk and chicken, saw minor price drops. But these reductions barely registered against the broader inflationary trend, which has persisted across multiple sectors and continues to chip away at purchasing power.
The Bureau of Economic Research attributes much of the ongoing inflation to external forces — global market instability, the rising cost of goods and services, and the territory’s unique vulnerability to climate and supply chain disruptions. While fuel prices remained relatively flat in 2024, with gasoline inflation dipping slightly into the negative, the cost of moving people and products around the islands continued to climb, driving up transportation costs overall by 4.5%.
Behind the numbers lies a growing concern about affordability and economic resilience. For Virgin Islands residents, inflation is no longer an abstract statistic — it’s showing up in grocery bills, rent payments, and monthly utility statements. Even with the pace of increase slowing, the reality is that prices are still climbing, and wages are struggling to keep up.
Whether inflation will continue to moderate in 2025 will depend on national and global economic trends, the report noted. In the meantime, the cost of living in the Virgin Islands remains elevated, with households across the territory still facing pressure from rising prices.
St. Croix Source
Local news
