Trinidad & Tobago: Inflation Moderating in 2023

• Indicators monitored by the Central Bank of Trinidad and Tobago show signs of a slow and steady recovery of the domestic economy in the first quarter of 2023, the latest Monetary Policy Announcement stated.
• Domestic inflation trended downward over the first five months of 2023. Headline inflation slowed to 5.7% in May 2023, compared with 6.0% one month prior and 8.7% in December 2022.
• Declining international food prices in tandem with easing local produce prices resulted in a decline in food inflation to 9.7% in May 2023, from 11.2% in April 2023 and 17.3% in December 2022.
• Core inflation, which excludes food prices, remained unchanged at 4.8% in May 2023 from the previous month but lower than the 6.7% recorded in December 2022. The outlook is for continued moderation in headline inflation, although adverse weather could lead to some spikes in local food crop prices.
• Additionally, there is some early evidence of improving labour market conditions based on observed increases in labour force participation in the third quarter of 2022 and the decline in the number of persons retrenched during the second half of 2022. The outlook for 2023, therefore, continues to look favourable, barring major external shocks.

(Sources: Central Bank of Trinidad and Tobago & Trinidad Express Newspapers)