A recent survey was conducted in May 2013 with 300 respondents showed that business sector expected inflation for the calendar year to be 10.3 percent, which is lower than the 10.6 percent they expected when the April 2013 survey was done. The expected inflation for calendar year 2013 was higher than the outturn of 8.0 per cent for 2012 and the annual point to-point inflation of 9.1 per cent as at May 2013.
In the latest survey respondents’ expectation of inflation 12 months ahead was down to 11.2 percent in the May 2013 survey from the 11.8 percent indicated in the April 2013 survey. Bank of Jamaica is saying that the expectation for lower inflation could have been indicative of the abatement in uncertainty surrounding the Government’s economic programme.
The central bank states that the Statistical Institute of Jamaica (STATIN) undertakes surveys of businesses on behalf of the Bank of Jamaica to ascertain the expectations about variables which are likely to have an impact on inflation in the near-term. In this regard, the survey captures the perception of Chief Executive Officers, Managing Directors and Financial Controllers about the future movement of prices, current and future business conditions and the expected rate of increase in wages and salaries. These responses assist the Central Bank in charting future policy decisions.
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