Jamaica CPI Registers 4.1% 12-month point-to-point inflation for November- remains in the BOJ's target range

In line with the Bank of Jamaica's expectations, the local consumer price index (CPI) decelerated during the month of November.  The 12-month CPI  Inflation which is the primary variable tracked by the BOJ under its Inflation targeting regime was 4.1%  for November,  down 60bps when compared with the outcome (4.7%) for October.  At this level, the inflation result remains within the BOJ's target range of 4% to 6%. There was no growth (0.0% movement) in the CPI for the month of November.  

According to STATIN, this outcome was influenced by a 0.3 percent increase in the index for the division ‘Food and Non-Alcoholic Beverages’. This was as a result of higher prices for vegetables, starchy foods, and fruits. However, this increase was tempered by a 0.8 percent decline in the division ‘Housing, Water, Electricity, Gas and Other Fuels’ due mainly to reduced rates for electricity despite the increased rates for water and sewage. Additionally, the ‘Transport’ division also declined by 0.7 percent as a result of a decrease in the price of petrol.

The BOJ in its recent Short-Term Inflation Analysis and Forecast report indicated that it is expecting inflation to remain within its target range for fiscal 2018/19.   It also indicated that risks to its projections are fairly balanced for the next four quarters.