Trinidad and Tobago: Food Price Inflation Eases

• The average price of food and non-alcoholic beverages increased by 12.99% between March 2022 and March 2023, according to Guardian Media calculations of data published by the Central Statistical Office (CSO) on Sunday. This is lower than the 14.04% registered between February 2022 and February 2023, an indication of an easing in the increase in prices of food and non-alcoholic beverages.
• For the period March 2022 to March 2023, headline inflation was 7.34%; down from the 7.60% recorded in February and the 8.3% in January (year-over-year). Additionally, the food and non-alcoholic beverages decreased from 147.8 points in February 2023 to 146.1 points in March 2023, reflecting a decline of 1.2%.
• The general downward movement in the prices of pumpkin, tomatoes, melon, hot peppers, cabbage, melongene, carrots, pimento, celery, and parboiled rice, contributed significantly to the decline.
• However, this was offset by the general increases in the prices of chilled or frozen beef, fresh beef, chilled or frozen pork, cucumber, onions, oranges, table margarine, grapes, corn, and plantains.
• As inflation continues to become more palatable for consumers (CPI 2023: 4.8% y-o-y), Fitch Solutions expects that the Central Bank of Trinidad & Tobago will continue to leave its policy rate unchanged at 3.5% for the remainder of the year. This is in an effort to support borrowing and the continued post-pandemic economic recovery.

 (Sources: Trinidad and Tobago Guardian & Fitch Solutions)