Point-to-Point Inflation Falls to 5.1% in July, despite 0.8% Increase in CPI

  • Consumer prices rose 0.8% in July 2024, with the All Jamaica Consumer Price Index (CPI) rising from 136.4 in June to 137.5 in July.
  • This upward adjustment was primarily driven by a 1.9% increase in the heavily weighted index for the division ‘Food and Non-Alcoholic Beverages’. There was a 7.4% rise in the index for ‘Vegetables, tubers, plantains, cooking bananas and pulses’ largely stemming from higher prices for some agricultural produce, chiefly vegetables, in the aftermath of Hurricane Beryl.
  • Also contributing to the upward movement in the CPI for July was a 0.4% rise in the index for ‘Transport’ division due to higher petrol prices and increased toll rates for the East-West leg of Highway 2000.
  • Despite higher consumer prices during the month, the point-to-point inflation rate for the All Jamaica Consumer Price Index from July 2023 to July 2024 was 5.1%. This was 0.3 percentage points lower than the 5.4% recorded for June 2023 to June 2024. The divisions making the largest contribution to the point-to-point inflation rate were "Transport" (11.5%), "Food and Non-Alcoholic Beverages" (3.5%), and "Housing, Water, Electricity, Gas and Other Fuels" (5.0%).
  • The reduction in point to point inflation was largely stemming from the slowdown in the rate of increase in the "Food and Non-Alcoholic Beverages", and "Housing, Water, Electricity, Gas and Other Fuels", declining from 4.0% to 3.5% and 5.9% to 5.0%, respectively.
  • At its last monetary policy meeting in June, the BOJ kept its policy rate at 7.00 and agreed to start a gradual easing of its monetary policy stance. Inflation is projected to remain generally within the 4-6% target range over the next two years, with minor deviations in 2025 due to potential fluctuations in agricultural prices. As such, BOJ will continue to monitor these price movements to guide its decisions on policy rate adjustments and other monetary policy actions in the future. The next policy decision will be on the 20th of August.

(Sources: STATIN & NCBCM Research)