T&T Central Bank: Headline Inflation to Remain Low This Year

• Trinidad and Tobago’s headline inflation 'slowed significantly' in the second half of last year as price increases for both food and non-food items eased, and it is expected to remain low this year, the Central Bank has stated in its latest economic bulletin.
• According to data from the Central Statistical Office (CSO), headline inflation measured 0.7% (year-on-year) in December 2023, down from 4.7% in July 2023.
• Retreating inflationary conditions were evident in both food and core inflation over the six months. Food inflation declined from 8.6% in July 2023 to -1.1% in December 2023, while core inflation moderated to 1.2% in December 2023, down from 3.7% in July 2023.
• Furthermore, headline inflation is expected to remain low in 2024 based on the agency’s projection for imported inflation to be fairly low, barring fresh external shocks in energy markets and as a result of conflict-related shipping problems.
• That said, the Central Bank has warned that several factors could change the current deflationary situation, including weather conditions, possibly higher utility rates, increased cement prices, and the levy of property taxes could also lead to an uptick in domestic inflation.

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