Point-to-Point Inflation Inches Up to 5.4% in June

  • Consumer prices rose 1.1% in June 2024, with the All Jamaica Consumer Price Index (CPI) rising from 134.9 in May to 136.4 in June.
  • The main contributor to this movement was a 1.4% increase in the index for the heaviest weighted division, ‘Food and Non-Alcoholic Beverages’. The index for the class ‘Vegetables, tubers, plantains, cooking bananas and pulses’ rose 6.8% during the month on the back of higher prices for some agricultural produce, primarily vegetables, such as cabbage, carrot, tomato and yam.
  • The inflation rate was also impacted by an 0.8% increase in the index for the ‘Housing, Water, Electricity, Gas and Other Fuels’ division, which was largely influenced by higher electricity rates. Higher cost of rent also contributed to the increase; with actual rent increasing by 0.4% and imputed rent up by 1.0%. However, the overall inflation was tempered by a 1.8% fall in the index for the ‘Water Supplies and Miscellaneous Services related to the Dwelling’ due to lower water and sewage rates.
  • Additionally, there was a 1.3% increase in the index for the ‘Transport’ division mainly due to the revised fare structure of the Jamaica Urban Transit Company Limited (JUTC).
  • Given the sharp increase in consumer prices for June, the point-to-point inflation rate was 5.4%. This was 0.2 percentage points higher than the 5.2% recorded for May 2023 to May 2024. The divisions making the largest contribution to the point-to-point inflation rate were ‘Food and Non-Alcoholic Beverages’ (4.0%), ‘Transport’ (11.1%) and ‘Housing, Water, Electricity, Gas and Other Fuels’ (5.4%). The calendar year-to-date inflation rate as of June 2024 was -0.3%.
  • At its last monetary policy meeting in June, the BOJ kept its policy rate at 7.00% and agreed to start gradually easing its monetary policy stance. However, with the recent passage of Hurricane Beryl, disruption to produce supplies could put upward pressure on food prices. This upward pressure could delay the BOJ’s plans to ease rates as food prices are a key component in Jamaica’s CPI basket. The next policy decision will be on the 20th of August.

(Sources: STATIN & NCBCM Research)