Inflation Rate Remains Within Target
- According to the Statistical Institute of Jamaica (STATIN), consumer prices fell by -1.6% in January. The decline in the first month of the year resulted in the 12-month point-to-point inflation rate of 4.7%, down from 5.2% in the 12-months to December 2020.
- A 4.6% decline in the index for the heaviest weighted division, ‘Food and Non-Alcoholic Beverages’ and a 0.8% decrease in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division were behind the reduction in consumer prices.
- However, an increase of 0.7% in the ‘Transport’ index due to increased petrol prices tempered the overall decline in the CPI.
- The decrease in the food and Non-Alcoholic Beverages’ division was due primarily to the 17.8% fall in the index of the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ as a result of lower prices for some agricultural produce aided by a recovery in production after the damaging effects of heavy rains in October and December 2020.
- Considering this, inflation for the fiscal-year-to-date (April 2020 – January 2021) was 3.4%.
- At 4.7%, inflation remained within the BOJ’s 4%-6% target range for the 7th consecutive month.